Table of Contents
2019 Annual Report
RenaissanceRe
Holdings Ltd.
Table of Contents
Financial Highlights | 1 | |
Letter to Shareholders | 2 | |
Message from the Chair | 8 | |
Comments on Regulation G | 9 | |
Form10-K | 11 | |
Office Locations | Last Page | |
Leadership Team | Last Page | |
Board of Directors, | Inside | |
Financial and Investor Information
| Back Cover |
Table of Contents
Financial Highlights for RenaissanceRe Holdings Ltd. and Subsidiaries
(In thousands of United States dollars, except per share amounts and percentages) | 2019 | 2018 | 2017 | |||||||||||
Gross premiums written
| $ | 4,807,750 | 3,310,427 | 2,797,540 | ||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders
| $ | 712,042 | 197,276 | (244,770 | ) | |||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1)
| $ | 402,911 | 349,027 | (336,894 | ) | |||||||||
Total assets
| $ | 26,330,094 | 18,676,196 | 15,226,131 | ||||||||||
Total shareholders’ equity
| $ | 5,971,367 | 5,045,080 | 4,391,375 | ||||||||||
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Per common share amounts
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Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted
| $ | 16.29 | 4.91 | (6.15 | ) | |||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted (1)
| $ | 9.13 | 8.73 | (8.46 | ) | |||||||||
Book value per common share
| $ | 120.53 | 104.13 | 99.72 | ||||||||||
Tangible book value per common share (1)
| $ | 114.03 | 97.85 | 93.23 | ||||||||||
Tangible book value per common share plus accumulated dividends (1)
| $ | 134.71 | 117.17 | 111.23 | ||||||||||
Dividends per common share
| $ | 1.36 | 1.32 | 1.28 | ||||||||||
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Ratios
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Return on average common equity | % | 14.1 | 4.7 | (5.7 | ) | |||||||||
Operating return on average common equity (1)
| % | 8.0 | 8.4 | (7.7 | ) | |||||||||
Net claims and claim expense ratio
| % | 62.8 | 56.7 | 108.4 | ||||||||||
Underwriting expense ratio
| % | 29.5 | 30.9 | 29.5 | ||||||||||
Combined ratio | % | 92.3 | 87.6 | 137.9 |
(1) | Represents anon-GAAP financial measure, which is reconciled in the “Comments on Regulation G” on pages 9 and 10. |
Financial Strength Ratings
A.M. Best(1) | S&P(2) | Moody’s(3) | Fitch(4) | |||||||||||||
Renaissance Reinsurance Ltd. | A+ | A+ | A1 | A+ | ||||||||||||
DaVinci Reinsurance Ltd. | A | A+ | A3 | – | ||||||||||||
Renaissance Reinsurance of Europe Unlimited Company | A+ | A+ | – | – | ||||||||||||
Renaissance Reinsurance U.S. Inc. | A+ | A+ | – | – | ||||||||||||
RenaissanceRe Europe AG | A+ | A+ | – | – | ||||||||||||
RenaissanceRe Specialty U.S. | A+ | A+ | – | – | ||||||||||||
Top Layer Reinsurance Ltd. | A+ | AA | – | – | ||||||||||||
Vermeer Reinsurance Ltd. | A | – | – | – | ||||||||||||
RenaissanceRe Syndicate 1458 | – | – | – | – | ||||||||||||
Lloyd’s Overall Market Rating | A | A+ | – | AA- | ||||||||||||
RenaissanceRe | Very Strong | Very Strong | – | – |
Ratings as of February 3, 2020.
(1) | The A.M. Best ratings for the Company’s principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. The A.M. Best rating for RenaissanceRe represents the Company’s Enterprise Risk Management (“ERM”) score. |
(2) | The S&P ratings for the Company’s principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating and the issuer’s long-term issuer credit rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. The S&P rating for RenaissanceRe represents the rating on its ERM practices. |
(3) | The Moody’s ratings represent the insurer’s financial strength rating. |
(4) | The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. |
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By Kevin O’Donnell
President and Chief Executive Officer
Our success was the culmination of a well-planned and aggressively executed strategy where our expanded footprint, preferential access to partner capital and strong customer relationships uniquely positioned us to recognize and benefit from positive market trends.
Dear Shareholders,
2019 was a defining year for RenaissanceRe. We organically grew our business in a favorable but complex market. At the same time, we completed the acquisition of Tokio Millennium Re (“TMR”), increasing our global reach, capital efficiency and depth of human capital. Our growth occurred across our segments and platforms and has resulted in the largest underwriting portfolio in our history, and, if our assumptions prove correct, the most profitable. Our success was the culmination of a well-planned and aggressively executed strategy where our expanded footprint, preferential access to partner capital and strong customer relationships uniquely positioned us to recognize and benefit from positive market trends.
It was also the third year in a row characterized by multiple large, catastrophic events. Since our inception, we have been in the forefront of protecting communities from some of the most difficult challenges they face, whether environmental, social or geopolitical in nature. This year yet again underscored the connection between the reinsurance industry and social and environmental change, as the world grappled with the increasing impact of climate change and the related growing insurance protection gap.
These challenges will continue to influence the next decade of risk transfer. The impact of climate change brings responsibilities as well as opportunities, requiring the industry to adopt a more disciplined and rigorous approach to modeling and forward-looking partnerships with customers, brokers and the public sector. At the same time, reinsurers who have the tools to understand these evolving risk dynamics will find profitable opportunities to grow and ultimately create better outcomes for both society and shareholders.
I. Our Performance in 2019
Financial Performance
I am proud of our strong financial performance in 2019, where we reported net income available to RenaissanceRe common shareholders of $712 million and operating income available to RenaissanceRe common shareholders
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RenaissanceRe Holdings Ltd. 2019 Annual Report
of $403 million. Our book value per common share increased by 15.7% and our tangible book value per common share plus change in accumulated dividends increased by 17.9%. For the full year, our return on average common equity was 14.1% and our operating return on average common equity was 8.0%. Additionally, we paid $2.3 billion in gross claims, helping to rebuild communities and lives.
With an improving rate environment and an extended global reach, we found many attractive opportunities to deploy capital in 2019, and as such did not repurchase any common shares. In 2020, we joined a small and distinguished group of companies by raising our quarterly dividend for the 25th consecutive year.
Loss Creep and 2019 Losses
Our industry experienced several large catastrophes during the year, most notably Typhoon Hagibis in Japan. Loss creep on prior year events, particularly in Florida and Japan, also continued to beset the industry. I am proud of the way our team has helped our customers manage both current and prior year losses. RenaissanceRe’s value proposition lies in quantifying risk, providing efficient risk transfer and absorbing large losses when they occur. This allows us to contribute to the resilience of communities when they need us most and reinforces our value as a trusted partner to our customers.
In addition to loss creep, the Florida domestic market also faces deep structural challenges. Fraud combined with climate change and sea level rise have increased the risk of loss. At the same time, Florida is the peak zone for property catastrophe risk in the world, resulting in it being very capital intensive to protect. Over the past decade, rate decreases have taken out much of the margin in Florida business, making it relatively less attractive. As a result, we have increasingly diversified away from Florida and into more attractive business, including other forms of Southeast hurricane risk. Our Florida partners are very important to us and we hope we can continue to support them. That said, Florida is a market that needs to improve on multiple fronts, just one of which is rate.
Tokio Millennium Re
It has been over a year since we acquired TMR. We quickly presented a unified front to the market and have been speaking with one voice, executing a consistent strategy and operating one underwriting system with a single view of risk.
In my view, we have far exceeded the goals we set out for ourselves at the onset of the transaction, both financially and strategically. Financially, by the end of Q1 2020, we will exceed our most important goal of achieving anafter-tax earningsrun-rate contribution greater than $100 million. The addition of TMR also improved our capital and operational leverage. In the last three years, we more than doubled our gross premiums written while growing shareholders’ equity by 22%. Likewise, direct expenses, which are the sum of corporate and operational expenses, only increased by 13% over the same period after adjusting for $50 million in transaction and integration expenses associated with the acquisition of TMR.
Strategically, our goal was to gain increased penetration into the reinsurance market at a time when desirable risk was scarce. Our customers wanted to expand their relationships with us on more comprehensive, global solutions, and we wanted to build on our growing leadership in the Casualty & Specialty markets. Post-acquisition, we have retained the business we find attractive and strengthened our existing customer relationships. The Casualty market has improved and, in many cases, we enhanced terms at renewal more than originally anticipated, further increasing the profitability of the TMR portfolio. Lastly, and crucially, we have bolstered our human capital through the addition of many new, talented employees who bring a diverse set of skills and experience to our already strong team.
Due to our successful integration of TMR, we were able to enter 2020 in a strong position to capture opportunities in an improving market. I remain confident that the TMR acquisition will continue to make a significant contribution to shareholder value in the years to come.
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Letter to Shareholders (continued)
II. Aspiring to be the Best Underwriter
Agility inGross-to-Net Strategy
In my 2017 Letter to Shareholders, I explained that our value proposition extends beyond price. While market conditions have changed significantly since 2017, this sentiment remains as true as ever. One of our key strategic advantages is the ability to deliver value to our stakeholders under all market conditions. Our growth in scale and diversity has only heightened this ability.
Our goal is to construct the most efficient portfolio of risk possible, and we have multiple levers for achieving this. An improving rate environment is advantageous, but is only one lever among many. Another important lever is ceded retrocessional coverage, which has contributed to the efficiency of our portfolio over the last several years. Continuing large losses in the retrocessional space have reduced capacity in this previously oversubscribed market and resulted in material rate increases. As a result, we exposed more of our underwriting capital, buying less retrocessional coverage and selling more retrocessional protection.
Our capital flexibility and increased scale facilitated this efficient outcome. In 2019 and through early 2020, we raised an additional $1.8 billion of capital through our managed joint ventures and third-party capital vehicles. In addition, we raised $400 million of catastrophe bond capacity in our latest Mona Lisa offering. Finally, our increased scale and diversification serves as an additional buffer to potential large losses, which is evident from our strong performance in 2019 despite a net negative impact on net income available to RenaissanceRe common shareholders of $348 million related to large loss events.
Managing Casualty Risk
We have consistently constructed our Casualty & Specialty portfolio to have an attractive return on risk and, as we continue to achieve scale in this segment, should increasingly
benefit from its profitable and diversifying earnings stream. The profit we achieved in our Casualty & Specialty segment in 2019 was a result of disciplined underwriting and astute portfolio construction.
In the second half of 2019, markets began to recognize the growing impact of loss inflation on many Casualty lines, with excess casualty and commercial auto among the most affected. Individual jury awards between $100 million and $200 million are becoming increasingly prevalent. As a result, the industry has struggled to manage growing adverse development on prior years. We recognized these trends early, reducing our excess casualty business materially and avoiding commercial auto. In addition, we have the benefit of an adverse development cover protecting the business we acquired from TMR.
Not all Casualty risks are created equal and it takes many years for a differentiated result to emerge in a portfolio of long-tail risk. Our underwriters have navigated this market by being rigorous about selecting the best risks, overweighting our portfolio with more attractive classes while avoiding the most challenging ones. We were able to do this in part due to our investment during the early stages of our Casualty business in tools to track our performance at both the individual deal and portfolio level, as robust benchmarking models are required to differentiate among the best risks. In addition, our Integrated System plays a particularly critical role as it takes coordination between underwriting, pricing, claims and reserving teams to identify trends early and act on them expeditiously.
Looking forward, pricing is not yet adequate for the Casualty business overall, but I remain confident the market will continue to require rate increases over the next several renewals and will move toward rate adequacy.
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RenaissanceRe Holdings Ltd. 2019 Annual Report
Pursuing Superior Returns
Our Integrated System andGross-to-Net Strategy enable us to bring the most efficient capital to the most desirable risk in order to produce superior returns. For us, being the Best Underwriter and producing superior returns are synonymous.
We believe that reinsurance markets are less efficient than capital markets. Consequently, our efforts are directed towards accessing capital markets and redeploying its very efficient capital into attractive reinsurance risk.
This strategy is predicated on the validity of two baseline assumptions. First, that reinsurance markets are in fact less efficient. Second, that we demonstrate sufficient skill to optimize our own portfolio in the context of broader market inefficiency.
Why do we believe the reinsurance market is generally less efficient? There are two primary reasons.
First, unlike capital markets, considerable information asymmetries exist in the reinsurance marketplace. Reducing these asymmetries requires markets to make a significant investment in people and tools to capture and quantify all the sources of exposure to a particular risk.
Second, catastrophic risk is difficult for the market to efficiently manage, in part because it is characterized by a small number of very large losses, the occurrence of which are infrequent and unpredictable. These events drive the tail of frequency distributions, and as such are heavily capital consumptive. It takes great underwriting skill and sufficient market scale to effectively diversify this risk.
Our ability to benefit from this inefficiency derives from a number of practices that are core to our strategy:
1. | Only write profitable business. Find the best business in profitable markets and not the one good deal in a bad market. |
2. | Match desirable risk with efficient capital. Match profitable risk with the most efficient capital available to maximize return. Efficient capital can make good business better, but it cannot make bad business good. |
3. | Understand the risk. Seek to understand the full distribution of outcomes by developing a more granular understanding of a particular risk and incorporating that understanding into our models. |
4. | Reserve discipline. A rigorous approach to setting reserves is an important element of being the Best Underwriter. Beyond the obvious provision of sufficient resources to pay claims, reserves offer a lens on pricing adequacy. Development trends in Casualty loss triangles influence the pricing of new business. Consequently, optimism in past year reserves propagates poor pricing decisions into the future. |
5. | Pay claims promptly. Relationships with customers are built on a foundation of trust that is based on the willingness and ability to pay claims promptly. |
6. | Alignment with capital. Strong alignment with capital providers helps prevent adverse selection. This alignment is achieved through clear underwriting guidelines for apportioning risk between owned and managed entities, strong internal controls and “skin in the game”. Alignment with capital means experiencing a loss when our partners pay a loss, not simply making less when they suffer material losses. |
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Letter to Shareholders (continued)
Drivers of Profit
As we move into 2020, interest rates continue to test historic lows, and in some cases are even negative, placing substantial drag on future investment performance across our industry. While low interest rates impact the whole market, investment income is only one of the three primary drivers of our profit — the other two being underwriting income and fee income.
First and foremost, our vision is to be the Best Underwriter, and profitable underwriting has always been our focus. Our ability to generate an underwriting profit will become increasingly valuable in a continuing low yield environment. At the same time, low interest rates should put additional upward pressure on reinsurance rates, the benefit of which should disproportionately accrue to the best underwriters.
Our second driver of profit is fee income. Fees will become an increasingly important component of our earnings stream as our Ventures business continues to grow. This growth is attributable to the hybrid model of owned and managed capital that we pioneered. Investors recognize the value of alignment, strong governance and superior underwriting. From our perspective, partner capital helps us solve more of our customers’ biggest problems.
The third driver of profit is investment income. Over the last decade, as we have increased scale and diversified business mix, our invested assets have grown materially, more than offsetting the impact of declining interest rates. We have always aimed to be prudent with our investments and will not stretch for yield in a continuing low interest rate and credit spread environment.
Due to our three drivers of profit, I expect that we will outperform in a continuing low interest rate environment.
III. Our Corporate Purpose
Our Role in Ameliorating Climate Change Risk
For over 25 years, we have been a leader in understanding and modeling climate change risk, proactively engaging with our stakeholders to promote mitigation and disaster preparedness in order to increase the resiliency and sustainability of communities throughout the world.
We believe that the frequency and severity of natural catastrophes have increased due to human-driven climate change. Already in California, the wildfire season has shifted and now overlaps more with the wind season, making extreme conflagrations increasingly prevalent. Our scientists predict that extreme weather events will be more frequent and more severe. There will be increasing wind and rain risk from tropical cyclones. A higher proportion of hurricanes will reach extreme category 4 and 5 levels. Sea level rise will exacerbate storm surge.
Anthropogenic climate change is amplifying extreme weather events. We have incorporated this reality into our catastrophe models, increasing hazard functions above where commercially available models are set. One of the advantages of having an independent view of risk is that we can easily adapt our proprietary models to reflect the evolving climate paradigm.
As rising greenhouse gas levels amplify the risk of climate change, we are uniquely positioned to anticipate and absorb the increased economic losses that will result. I believe RenaissanceRe can best advance positive environmental and social change by ameliorating climate change risk in two important ways.
First — we can help protect those most vulnerable to climate change. The availability of insurance and other forms of risk financing is critical to protecting communities around the world from the economic impacts of increasingly severe weather. One of the most efficient forms of capital to provide this protection is reinsurance.
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Second — anthropogenic climate change means polluters are getting a “free lunch”, damaging the environment without paying the economic cost. This “free lunch” makes the world increasingly more expensive to protect, and prevents society from achieving a Pareto optimal outcome — the best possible outcome for the largest number of people. If the economic cost of this pollution can be accurately reflected, it will act as an incentive to reduce greenhouse gas emissions.
Reinsurance acts as a mechanism to reflect the costs of climate change. This outcome is only possible if reinsurers explicitly factor the impacts of climate change into their models and charge an appropriate price for the increase in risk. Ultimately, this should incentivize reduced greenhouse gas emissions and result in an increasingly optimal benefit to society.
Benefitting All Stakeholders
Attention to environmental, social and governance (ESG) issues has always been a central part of our corporate strategy. We embraced a commitment to benefit all of our stakeholders decades ago, and it remains firmly embedded in our values today. For example, our core principle ofRespect requires “treating all of our stakeholders with a genuine sense of worth for their person.” Similarly, our principle ofIntegrity requires “maintaining an approach to all dealings that is upright, honest and morally sound.” Our commitment to being a trusted partner is also evident through our steady focus on building superior customer relationships and generous charitable giving program.
We have consistently asserted that our employees are our most valuable asset. As a result, we are rigorous in our hiring practices and invest heavily in professional development. In addition to existing programs, in 2019 we launched two customized employee development initiatives to further build their capabilities and skills. We are pleased with the diversity of backgrounds and experiences that our new employees bring us and are proud of our ability to retain talent, with about 25% of our employees having a tenure of over 10 years.
Beyond direct stakeholders, I believe our beneficial impact is much broader. In my 2017 letter, I wrote extensively on the social value proposition of reinsurance, and our role in closing the protection gap and improving the overall well-being of society.
That said, our mission is to produce superior returns, by which we mean maximizing long-term shareholder value. We do this by being a trusted, long-term partner to our customers for assessing and managing risk, delivering responsive solutions, and keeping our promises.
Serving stakeholders and maximizing shareholder value are complementary values. I believe it is not possible to achieve the latter without first focusing on the former. We have always been good stewards of the capital that our shareholders and other partners have entrusted to us and will continue to deploy that capital consistent with our mission and our principles.
In Closing
Last year, I closed my letter by recognizing the challenge that we would face in 2019 growing our business while simultaneously integrating TMR. I am very proud of the RenaissanceRe team, who worked hard to accomplish these strategic goals and more than exceeded our expectations. We begin 2020 looking different than we did one year ago, with a larger and much more diversified business that I believe will make us more resilient and help us to be a broader and better partner to our stakeholders.
Sincerely, |
Kevin J. O’Donnell |
President and Chief Executive Officer |
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It is a pleasure to reach out to you, our shareholders, on behalf of your Board of Directors.
Over my tenure as Chair, certain RenaissanceRe qualities have remained steadfast, including this Board’s commitment to overseeing management’s development and execution of a sound strategic plan consistent with RenaissanceRe’s mission and values. As this year’s letter from our Chief Executive Officer, Kevin O’Donnell, outlines, the commitment to integrity and respect that shapes RenaissanceRe’s culture and actions have also been constants. Yet against the backdrop of those fundamental principles, 2019 was a momentous year of transition for RenaissanceRe. Our management team and employees effectively executed our ambitious strategy, resulting in a company that is stronger, more diversified, and more sustainable than ever, while maintaining the differentiating qualities that have helped drive our history of leadership and superior returns.
As Kevin references in his letter, the Company has grown substantially, both organically and inorganically, in a three-year period. Not every year, or even every three-year period, will produce change at this pace. Regardless of the rate of change, the Board is committed to ensuring that our own oversight capabilities and skills evolve in tandem both with the Company’s strategy and the surrounding environment.
The growth we have overseen has not only diversified RenaissanceRe’s revenue stream, core customer network and investment opportunities, but also the potential risks which must be identified, analyzed and mitigated. External factors outside of our control may also cause the risks that we face to evolve, or new risks to emerge. Your Board’s oversight evolves over time to reflect these developments. For example, over the last several years, the Board has enhanced its capabilities and processes around matters such as cybersecurity risk, environmental, social and governance (“ESG”) related matters, and human capital strategy and developments. We will continue to review RenaissanceRe’s oversight frameworks and resource mix as our business opportunities and potential risks change in future periods.
As a matter of focus, your Board continuously works to ensure that our executive compensation program optimally incents the achievement of our strategic objectives and fosters shareholder alignment as the Company and the market changes over time. For example, in 2019, the Compensation and Corporate Governance Committee
adjusted the compensation structure of our Chief Executive Officer and other named executive officers commensurate with the Company’s organic growth and our successful acquisition of Tokio Millennium Re. Over the course of 2019, your Board oversaw a comprehensive shareholder engagement program, seeking feedback from our shareholders on a variety of topics, including potential changes to our executive compensation program in the context of the operational and portfolio changes summarized above. We appreciate all the input and feedback received, which played a significant role in shaping further refinements to our executive compensation program commencing with the 2020 compensation cycle. These changes are discussed in the accompanying proxy statement for our 2020 Annual General Meeting of Shareholders. We remain committed to ensuring that our shareholders fully understand our executive compensation program, and look forward to reviewing your input on the changes we have adopted.
Oversight of ESG matters, which recently emerged as a broader topic of dialogue, has likewise always been a central focus of RenaissanceRe and your Board. As Kevin’s letter outlines, the Company’s commitment to these values benefits our stakeholders, communities and environment. As the expectations of customers, investors, regulators and other stakeholders evolve in coming periods, your Board is committed to overseeing and supporting management’s ongoing efforts to further its leadership.
Kevin’s accompanying letter ably demonstrates how RenaissanceRe navigated the strategic and operational challenges of 2019, and how our dynamic strategy, differentiated culture, distinctive capabilities and values position us to succeed in 2020 and beyond. We are grateful to him, our executive team, our global employee base, and the customers, capital providers, intermediaries and business partners which comprise the broader RenaissanceRe family. They are the basis for our success.
On behalf of all my fellow directors, thank you for your ongoing support of RenaissanceRe.
Sincerely, |
James L. Gibbons |
Non-Executive Chair |
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In addition to the financial measures prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) set forth in this Annual Report, the Company has included certainnon-GAAP financial measures within the meaning of Regulation G. The Company has consistently provided these financial measures in previous investor communications and the Company’s management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on thesenon-GAAP measures in assessing the Company’s overall financial performance.
The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments attributable to RenaissanceRe common shareholders, transaction and integration expenses associated with the acquisition of TMR, the income tax expense or benefit associated with these exclusions to “net income (loss) available (attributable) to RenaissanceRe common shareholders” and the exclusion of the write-down of a portion of the Company’s deferred tax asset as a result of the reduction in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Cuts and Jobs Act of 2017 (the “Tax Bill”), which was enacted on December 21, 2017. The Company’s management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders” is useful to investors because it more accurately measures and predicts the Company’s results of operations by removing the variability arising from: fluctuations in the Company’s fixed maturity investment portfolio, equity investments trading and investments-related derivatives; certain transaction and integration expenses associated with the acquisition of TMR; the associated income tax expense or benefit of these adjustments, and thenon-recurring impact of the write-down of a portion of the Company’s deferred tax assets as a result of the Tax Bill. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share—diluted” and “operating return on average common equity – annualized.” The following is a reconciliation of: (1) net income (loss) available (attributable) to RenaissanceRe common shareholders to operating income (loss) available (attributable) to RenaissanceRe common shareholders; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share—diluted to operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted; and (3) return on average common equity – annualized to operating return on average common equity – annualized:
Year Ended December 31, | ||||||||||||
(in thousands of United States dollars, except per share amounts and percentages) | 2019 | 2018 | 2017 | |||||||||
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Net income (loss) available (attributable) to RenaissanceRe common shareholders | $712,042 | $ | 197,276 | $(244,770) | ||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders(1) | (379,453 | ) | 154,205 | (140,416) | ||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 49,725 | 3,296 | - | |||||||||
Adjustment for income tax expense (benefit)(2) | 20,597 | (5,750 | ) | 11,587 | ||||||||
Adjustment for deferred tax asset write-down(3) | - | - | 36,705 | |||||||||
| ||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 402,911 | $ | 349,027 | $(336,894) | |||||||
| ||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $16.29 | $ | 4.91 | $(6.15) | ||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders(1) | (8.79 | ) | 3.88 | (3.52) | ||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 1.15 | 0.08 | - | |||||||||
Adjustment for income tax expense (benefit)(2) | 0.48 | (0.14 | ) | 0.29 | ||||||||
Adjustment for deferred tax asset write-down(3) | - | - | 0.92 | |||||||||
| ||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 9.13 | $ | 8.73 | $(8.46) | |||||||
| ||||||||||||
Return on average common equity | 14.1% | 4.7% | (5.7%) | |||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders(1) | (7.5% | ) | 3.7% | (3.3%) | ||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 1.0% | 0.1% | - | |||||||||
Adjustment for income tax expense (benefit)(2) | 0.4% | (0.1% | ) | 0.3% | ||||||||
Adjustment for deferred tax asset write-down(3) | - | - | 0.9% | |||||||||
| ||||||||||||
Operating return on average common equity | 8.0% | 8.4% | (7.8%) | |||||||||
|
(1) | Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders represents: net realized and unrealized gains (losses) on investments as set forth in the Company’s consolidated statement of operations less net realized and unrealized gains (losses) attributable to redeemable noncontrolling interests, which is included in net loss (income) attributable to redeemable noncontrolling interests in the Company’s consolidated statement of operations. Comparative information for all prior periods has been updated to conform to the current methodology and presentation. |
(2) | Adjustment for income tax expense (benefit) represents the income tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
(3) | Adjustment for deferred tax asset write-down represents the write-down of a portion of the Company’s deferred tax asset as a result of the reduction in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Bill, which was enacted on December 22, 2017. |
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The Company has included in this Annual Report “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following is a reconciliation of book value per common share to tangible book value per common share and tangible book value per common share plus accumulated dividends:
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
| ||||||||||||
Book value per common share
| $120.53 | $104.13 | $ 99.72 | |||||||||
Adjustment for goodwill and other intangibles(1)
| (6.50 | ) | (6.28 | ) | (6.49 | ) | ||||||
| ||||||||||||
Tangible book value per common share
| 114.03 | 97.85 | 93.23 | |||||||||
Adjustment for accumulated dividends
| 20.68 | 19.32 | 18.00 | |||||||||
| ||||||||||||
Tangible book value per common share plus accumulated dividends
| $134.71 | $117.17 | $111.23 | |||||||||
| ||||||||||||
Change in book value per common share
| 15.7 | % | 4.4 | % | (8.0 | %) | ||||||
Change in tangible book value per common share plus change in accumulated dividends
| 17.9 | % | 6.4 | % | (7.2 | %) | ||||||
|
(1) | For 2019, 2018 and 2017, goodwill and other intangibles included $24.9 million, $27.7 million and $16.7 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
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Table of Contents
Bermuda | 98-0141974 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading symbol | Name of each exchange on which registered |
Common Shares, Par Value $1.00 per share | RNR | New York Stock Exchange |
Series C 6.08% Preference Shares, Par Value $1.00 per share | RNR PRC | New York Stock Exchange |
Series E 5.375% Preference Shares, Par Value $1.00 per share | RNR PRE | New York Stock Exchange |
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share | RNR PRF | New York Stock Exchange |
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• | the effectiveness of our claims and claim expense reserving process; |
• | the effect of climate change on our business, including the trend towards increasingly frequent and severe climate events; |
• | our ability to maintain our financial strength ratings; |
• | the effect of emerging claims and coverage issues; |
• | collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that we intended to obtain; |
• | our reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of our revenue; |
• | our exposure to credit loss from counterparties in the normal course of business; |
• | the effect of continued challenging economic conditions throughout the world; |
• | soft reinsurance underwriting market conditions; |
• | the performance of our investment portfolio; |
• | a contention by the United States (the “U.S.”) Internal Revenue Service (the “IRS”) that Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), or any of our other Bermuda subsidiaries, is subject to taxation in the U.S.; |
• | the effects of U.S. tax reform legislation and possible future tax reform legislation and regulations, including changes to the tax treatment of our shareholders or investors in our joint ventures or other entities we manage; |
• | the success of any of our strategic investments or acquisitions, including our ability to manage our operations as our product and geographical diversity increases; |
• | our ability to retain our key senior officers and to attract or retain the executives and employees necessary to manage our business; |
• | our ability to effectively manage capital on behalf of investors in joint ventures or other entities we manage; |
• | foreign currency exchange rate fluctuations; |
• | changes in the method for determining the London Inter-bank Offered Rate (“LIBOR”) and the potential replacement of LIBOR; |
• | losses we could face from terrorism, political unrest or war; |
• | the effect of cybersecurity risks, including technology breaches or failure, on our business; |
• | our ability to successfully implement our business strategies and initiatives; |
• | our ability to determine any impairments taken on our investments; |
• | the effects of inflation; |
• | the ability of our ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; |
• | the effect of operational risks, including system or human failures; |
• | our ability to raise capital if necessary; |
• | our ability to comply with covenants in our debt agreements; |
• | changes to the regulatory systems under which we operate, including as a result of increased global regulation of the insurance and reinsurance industries; |
• | changes in Bermuda laws and regulations and the political environment in Bermuda; |
• | our dependence on the ability of our operating subsidiaries to declare and pay dividends; |
• | aspects of our corporate structure that may discourage third-party takeovers and other transactions; |
• | difficulties investors may have in servicing process or enforcing judgments against us in the U.S.; |
• | the cyclical nature of the reinsurance and insurance industries; |
• | adverse legislative developments that reduce the size of the private markets we serve or impede their future growth; |
• | consolidation of competitors, customers and insurance and reinsurance brokers; |
• | the effect on our business of the highly competitive nature of our industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; |
• | other political, regulatory or industry initiatives adversely impacting us; |
• | our ability to comply with applicable sanctions and foreign corrupt practices laws; |
• | increasing barriers to free trade and the free flow of capital; |
• | international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market; |
• | the effect of Organisation for Economic Co-operation and Development (the “OECD”) or European Union (“EU”) measures to increase our taxes and reporting requirements; |
• | the effect of the vote by the United Kingdom (the “U.K.”) to leave the EU; |
• | changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations; |
• | our need to make many estimates and judgments in the preparation of our financial statements; |
• | risks that the ongoing integration of TMR (as defined herein) disrupts or distracts from current plans and operations; and |
• | our ability to recognize the benefits of the acquisition of TMR. |
Year ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
(in thousands, except percentages) | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | ||||||||||||||||
Property | $ | 2,430,985 | 50.6 | % | $ | 1,760,926 | 53.2 | % | $ | 1,440,437 | 51.5 | % | ||||||||||
Casualty and Specialty | 2,376,765 | 49.4 | % | 1,549,501 | 46.8 | % | 1,357,110 | 48.5 | % | |||||||||||||
Other category | — | — | % | — | — | % | (7 | ) | — | % | ||||||||||||
Total gross premiums written | $ | 4,807,750 | 100.0 | % | $ | 3,310,427 | 100.0 | % | $ | 2,797,540 | 100.0 | % | ||||||||||
Year ended December 31, 2019 | Property | Casualty and Specialty | Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Excess of loss | $ | 1,758,787 | $ | 508,515 | $ | — | $ | 2,267,302 | |||||||||
Proportional | 546,405 | 1,583,554 | — | 2,129,959 | |||||||||||||
Delegated authority | 125,793 | 284,696 | — | 410,489 | |||||||||||||
Total gross premiums written | $ | 2,430,985 | $ | 2,376,765 | $ | — | $ | 4,807,750 | |||||||||
Year ended December 31, 2018 | |||||||||||||||||
Excess of loss | $ | 1,473,381 | $ | 366,635 | $ | — | $ | 1,840,016 | |||||||||
Proportional | 220,458 | 965,141 | — | 1,185,599 | |||||||||||||
Delegated authority | 67,087 | 217,725 | — | 284,812 | |||||||||||||
Total gross premiums written | $ | 1,760,926 | $ | 1,549,501 | $ | — | $ | 3,310,427 | |||||||||
Year ended December 31, 2017 | |||||||||||||||||
Excess of loss | $ | 1,192,980 | $ | 262,415 | $ | (7 | ) | $ | 1,455,388 | ||||||||
Proportional | 195,473 | 894,810 | — | 1,090,283 | |||||||||||||
Delegated authority | 51,984 | 199,885 | — | 251,869 | |||||||||||||
Total gross premiums written | $ | 1,440,437 | $ | 1,357,110 | $ | (7 | ) | $ | 2,797,540 | ||||||||
Year ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
(in thousands, except percentages) | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | ||||||||||||||||
Catastrophe | $ | 1,595,472 | 65.6 | % | $ | 1,349,324 | 76.6 | % | $ | 1,104,450 | 76.7 | % | ||||||||||
Other property | 835,513 | 34.4 | % | 411,602 | 23.4 | % | 335,987 | 23.3 | % | |||||||||||||
Total Property segment gross premiums written | $ | 2,430,985 | 100.0 | % | $ | 1,760,926 | 100.0 | % | $ | 1,440,437 | 100.0 | % | ||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
(in thousands, except percentages) | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | ||||||||||||||||
General casualty (1) | $ | 807,901 | 34.0 | % | $ | 453,097 | 29.2 | % | $ | 417,880 | 30.8 | % | ||||||||||
Professional liability (2) | 650,750 | 27.4 | % | 485,851 | 31.4 | % | 452,310 | 33.3 | % | |||||||||||||
Financial lines (3) | 457,000 | 19.2 | % | 352,902 | 22.8 | % | 303,800 | 22.4 | % | |||||||||||||
Other (4) | 461,114 | 19.4 | % | 257,651 | 16.6 | % | 183,120 | 13.5 | % | |||||||||||||
Total Casualty and Specialty segment gross premiums written | $ | 2,376,765 | 100.0 | % | $ | 1,549,501 | 100.0 | % | $ | 1,357,110 | 100.0 | % | ||||||||||
(1) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(2) | Includes directors and officers, medical malpractice, and professional indemnity. |
(3) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
Year ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
(in thousands, except percentages) | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | Gross Premiums Written | Percentage of Gross Premiums Written | ||||||||||||||||
Property Segment | ||||||||||||||||||||||
U.S. and Caribbean | $ | 1,368,205 | 28.5 | % | $ | 978,063 | 29.4 | % | $ | 954,269 | 34.1 | % | ||||||||||
Worldwide | 643,744 | 13.4 | % | 464,311 | 14.0 | % | 305,915 | 10.9 | % | |||||||||||||
Europe | 182,544 | 3.8 | % | 144,857 | 4.4 | % | 49,486 | 1.8 | % | |||||||||||||
Japan | 90,328 | 1.9 | % | 71,601 | 2.2 | % | 49,821 | 1.8 | % | |||||||||||||
Worldwide (excluding U.S.) (1) | 79,393 | 1.6 | % | 66,872 | 2.0 | % | 48,182 | 1.7 | % | |||||||||||||
Australia and New Zealand | 32,203 | 0.7 | % | 19,273 | 0.6 | % | 14,151 | 0.5 | % | |||||||||||||
Other | 34,568 | 0.7 | % | 15,949 | 0.5 | % | 18,613 | 0.7 | % | |||||||||||||
Total Property Segment | 2,430,985 | 50.6 | % | 1,760,926 | 53.1 | % | 1,440,437 | 51.5 | % | |||||||||||||
Casualty and Specialty Segment | ||||||||||||||||||||||
U.S. and Caribbean | 1,071,170 | 22.3 | % | 667,125 | 20.2 | % | 622,757 | 22.3 | % | |||||||||||||
Worldwide | 935,626 | 19.5 | % | 776,976 | 23.4 | % | 686,253 | 24.5 | % | |||||||||||||
Europe | 227,178 | 4.7 | % | 15,296 | 0.5 | % | 9,752 | 0.3 | % | |||||||||||||
Australia and New Zealand | 34,053 | 0.7 | % | 3,667 | 0.1 | % | 4,141 | 0.1 | % | |||||||||||||
Worldwide (excluding U.S.) (1) | 25,291 | 0.5 | % | 31,734 | 1.0 | % | 10,104 | 0.4 | % | |||||||||||||
Other | 83,447 | 1.7 | % | 54,703 | 1.7 | % | 24,103 | 0.9 | % | |||||||||||||
Total Casualty and Specialty Segment | 2,376,765 | 49.4 | % | 1,549,501 | 46.9 | % | 1,357,110 | 48.5 | % | |||||||||||||
Other category | — | — | % | — | — | % | (7 | ) | — | % | ||||||||||||
Total gross premiums written | $ | 4,807,750 | 100.0 | % | $ | 3,310,427 | 100.0 | % | $ | 2,797,540 | 100.0 | % | ||||||||||
(1) | The category “Worldwide (excluding U.S.)” consists of contracts that cover more than one geographic region (other than the U.S.). |
• | simulate a range of potential outcomes that adequately represents the risk to an individual contract; |
• | analyze the incremental impact of an individual reinsurance contract on our overall portfolio; |
• | better assess the underlying exposures associated with assumed retrocessional business; |
• | price contracts within a short time frame; |
• | capture various classes of risk, including catastrophe and other insurance risks; |
• | assess risk across multiple entities (including our various joint ventures) and across different components of our capital structure; and |
• | provide consistent pricing information. |
• | the reputation of the proposed cedant and the likelihood of establishing a long-term relationship with the cedant; |
• | the geographic area in which the cedant does business and its market share; |
• | historical loss data for the cedant and, where available, for the industry as a whole in the relevant regions and lines of business, in order to compare the cedant’s historical catastrophe loss experience to industry averages; |
• | the cedant’s pricing strategies; and |
• | the perceived financial strength of the cedant and factors such as the cedant’s historical record of making premium payments in full and on a timely basis. |
• | Assumed Risk. We define assumed risk as activities where we deliberately take risk against our capital base, including underwriting risks and other quantifiable risks such as credit risk and market risk as they relate to investments, ceded reinsurance credit risk and strategic investment risk, each of which can be analyzed in substantial part through quantitative tools and techniques. Of these, we believe underwriting risk to be the most material to us. In order to understand, monitor, quantify and proactively assess underwriting risk, we seek to develop and deploy appropriate tools to estimate the comparable expected returns on potential business opportunities and the impact that such incremental business could have on our overall risk profile. We use the tools and methods described above in “Underwriting” to seek to achieve these objectives. Embedded within our consideration of assumed risk is our management of our aggregate, consolidated risk profile. In part through the utilization of REMS© and our other systems and procedures, we analyze our in-force aggregate assumed risk portfolio on a daily basis. We believe this capability helps us to manage our aggregate exposures and to rigorously analyze and evaluate individual proposed transactions in the context of our in-force portfolio. This aggregation process captures line of business, segment and corporate risk profiles, calculates internal and external capital tests and explicitly models ceded reinsurance. Generally, additional data is added quarterly to our aggregate risk framework to reflect updated or new information or estimates relating to matters such as interest rate risk, credit risk, capital adequacy and liquidity. This information is used in day-to-day decision making for underwriting, investments and operations and is also reviewed quarterly from both a unit level and consolidated financial position perspective. We also regularly assess, monitor and review our regulatory risk capital and related constraints. |
• | Business Environment Risk. We define business environment risk as the risk of changes in the business, political or regulatory environment that could negatively impact our short term or long-term financial results or the markets in which we operate. This risk area also typically includes emerging risks. These risks are predominately extrinsic to us and our ability to alter or eliminate these risks is limited, so we focus our efforts on monitoring developments, assessing potential impacts of any changes, and investing in cost effective means to attempt to mitigate the consequences of, and ensure compliance with, any new requirements applicable to us. |
• | Operational Risk. We are subject to a number of additional risks arising out of operational, regulatory, and other matters. We define operational risk to include the risk we fail to create, manage, control or mitigate the people, processes, structures or functions required to execute our strategic and tactical plans and assemble an optimized portfolio of assumed risk, and to adjust to and comply with the evolving requirements of business environment risk applicable to us. In light of the rapid evolution of our markets, business environment, and business initiatives, we seek to continually invest in the tools, processes and procedures we use to mitigate our exposure to operational risk on a cost-effective basis. As with assumed risk and business environment risk, operational risk presents intrinsic uncertainties, and we may fail to appropriately identify or mitigate applicable operational risk. |
Year ended December 31, 2019 | Property | Casualty and Specialty | Total | |||||||
AON | 47.5 | % | 35.8 | % | 41.7 | % | ||||
Marsh | 31.7 | % | 22.3 | % | 27.1 | % | ||||
Willis Towers Watson | 7.3 | % | 14.3 | % | 10.8 | % | ||||
Total of largest brokers | 86.5 | % | 72.4 | % | 79.6 | % | ||||
All others | 13.5 | % | 27.6 | % | 20.4 | % | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Accident year | Year of occurrence of a loss. Claim payments and reserves for claims and claim expenses are allocated to the year in which the loss occurred for losses occurring contracts and in the year the loss was reported for claims made contracts. |
Acquisition expenses | The aggregate expenses incurred by a company for acquiring new business, including commissions, underwriting expenses, premium taxes and administrative expenses. |
Additional case reserves | Additional case reserves represent management’s estimate of reserves for claims and claim expenses that are allocated to specific contracts, less paid and reported losses by the client. |
Attachment point | The dollar amount of loss (per occurrence or in the aggregate, as the case may be) above which excess of loss reinsurance becomes operative. |
Bordereaux | A report providing premium or loss data with respect to identified specific risks. This report is periodically furnished to a reinsurer by the ceding insurers or reinsurers. |
Bound | A (re)insurance contract is considered bound, and the (re)insurer responsible for the risks of the contract, when both parties agree to the terms and conditions set forth in the contract. |
Broker | An intermediary who negotiates contracts of insurance or reinsurance, receiving a commission for placement and other services rendered, between (1) a policy holder and a primary insurer, on behalf of the insured party, (2) a primary insurer and reinsurer, on behalf of the primary insurer, or (3) a reinsurer and a retrocessionaire, on behalf of the reinsurer. |
Capacity | The percentage of surplus, or the dollar amount of exposure, that an insurer or reinsurer is willing or able to place at risk. Capacity may apply to a single risk, a program, a line of business or an entire book of business. Capacity may be constrained by legal restrictions, corporate restrictions or indirect restrictions. |
Case reserves | Loss reserves, established with respect to specific, individual reported claims. |
Casualty insurance or reinsurance | Insurance or reinsurance that is primarily concerned with the losses caused by injuries to third persons and their property (in other words, persons other than the policyholder) and the legal liability imposed on the insured resulting therefrom. Also referred to as liability insurance. |
Catastrophe | A severe loss, typically involving multiple claimants. Common perils include earthquakes, hurricanes, hailstorms, severe winter weather, floods, fires, tornadoes, typhoons, explosions and other natural or man-made disasters. Catastrophe losses may also arise from acts of war, acts of terrorism and political instability. |
Catastrophe excess of loss reinsurance | A form of excess of loss reinsurance that, subject to a specified limit, indemnifies the ceding company for the amount of loss in excess of a specified retention with respect to an accumulation of losses resulting from a “catastrophe.” |
Catastrophe-linked securities; cat-linked securities | Cat-linked securities are generally privately placed fixed income securities where all or a portion of the repayment of the principal is linked to catastrophic events. This includes securities where the repayment is linked to the occurrence and/or size of, for example, one or more hurricanes or earthquakes, or insured industry losses associated with these catastrophic events. |
Cede; cedant; ceding company | When a party reinsures its liability with another, it “cedes” business and is referred to as the “cedant” or “ceding company.” |
Claim | Request by an insured or reinsured for indemnification by an insurance company or a reinsurance company for losses incurred from an insured peril or event. |
Claims made contracts | Contracts that cover claims for losses occurring during a specified period that are reported during the term of the contract. |
Claims and claim expense ratio, net | The ratio of net claims and claim expenses to net premiums earned determined in accordance with either statutory accounting principles or GAAP. |
Claim reserves | Liabilities established by insurers and reinsurers to reflect the estimated costs of claim payments and the related expenses that the insurer or reinsurer will ultimately be required to pay in respect of insurance or reinsurance policies it has issued. Claims reserves consist of case reserves, established with respect to individual reported claims, additional case reserves and “IBNR” reserves. For reinsurers, loss expense reserves are generally not significant because substantially all of the loss expenses associated with particular claims are incurred by the primary insurer and reported to reinsurers as losses. |
Combined ratio | The combined ratio is the sum of the net claims and claim expense ratio and the underwriting expense ratio. A combined ratio below 100% generally indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% generally indicates unprofitable underwriting prior to the consideration of investment income. |
Delegated authority | A contractual arrangement between an insurer or reinsurer and an agent whereby the agent is authorized to bind insurance or reinsurance on behalf of the insurer or reinsurer. The authority is normally limited to a particular class or classes of business and a particular territory. The exercise of the authority to bind insurance or reinsurance is normally subject to underwriting guidelines and other restrictions such as maximum premium income. Under the delegated authority, the agent is responsible for issuing policy documentation, the collection of premium and may also be responsible for the settlement of claims. |
Excess of loss reinsurance or insurance | Reinsurance or insurance that indemnifies the reinsured or insured against all or a specified portion of losses on underlying insurance policies in excess of a specified amount, which is called a “level” or “retention.” Also known as non-proportional reinsurance. Excess of loss reinsurance is written in layers. A reinsurer or group of reinsurers accepts a layer of coverage up to a specified amount. The total coverage purchased by the cedant is referred to as a “program” and will typically be placed with predetermined reinsurers in pre-negotiated layers. Any liability exceeding the outer limit of the program reverts to the ceding company, which also bears the credit risk of a reinsurer’s insolvency. |
Exclusions | Those risks, perils, or classes of insurance with respect to which the reinsurer will not pay loss or provide reinsurance, notwithstanding the other terms and conditions of reinsurance. |
Frequency | The number of claims occurring during a given coverage period. |
Funds at Lloyd’s | Funds of an approved form that are lodged and held in trust at Lloyd’s as security for a member’s underwriting activities. They comprise the members’ deposit, personal reserve fund and special reserve fund and may be drawn down in the event that the member’s syndicate level premium trust funds are insufficient to cover its liabilities. The amount of the deposit is related to the member’s premium income limit and also the nature of the underwriting account. |
Generally Accepted Accounting Principles in the United States (“GAAP”) | Accounting principles as set forth in the statements of the Financial Accounting Standards Board (“FASB”) and related guidance, which are applicable in the circumstances as of the date in question. |
Gross premiums written | Total premiums for insurance written and assumed reinsurance during a given period. |
Incurred but not reported (“IBNR”) | Reserves for estimated losses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer, including unknown future developments on losses that are known to the insurer or reinsurer. |
Insurance-linked securities | Financial instruments whose values are driven by (re)insurance loss events. Our investments in insurance-linked securities are generally linked to property losses due to natural catastrophes. |
International Financial Reporting Standards (“IFRS”) | Accounting principles, standards and interpretations as set forth in opinions of the International Accounting Standards Board which are applicable in the circumstances as of the date in question. |
Layer | The interval between the retention or attachment point and the maximum limit of indemnity for which a reinsurer is responsible. |
Line | The amount of excess of loss reinsurance protection provided to an insurer or another reinsurer, often referred to as limit. |
Line of business | The general classification of insurance written by insurers and reinsurers, e.g., fire, allied lines, homeowners and surety, among others. |
Lloyd’s | Depending on the context, this term may refer to (a) the society of individual and corporate underwriting members that insure and reinsure risks as members of one or more syndicates (i.e., Lloyd’s is not an insurance company); (b) the underwriting room in the Lloyd’s building in which managing agents underwrite insurance and reinsurance on behalf of their syndicate members (in this sense Lloyd’s should be understood as a market place); or (c) the Corporation of Lloyd’s which regulates and provides support services to the Lloyd’s market. |
Loss; losses | An occurrence that is the basis for submission and/or payment of a claim. Whether losses are covered, limited or excluded from coverage is dependent on the terms of the policy. |
Loss reserve | For an individual loss, an estimate of the amount the insurer expects to pay for the reported claim. For total losses, estimates of expected payments for reported and unreported claims. These may include amounts for claims expenses. |
Managing agent | An underwriting agent which has permission from Lloyd’s to manage a syndicate and carry on underwriting and other functions for a member. |
Net claims and claim expenses | The expenses of settling claims, net of recoveries, including legal and other fees and the portion of general expenses allocated to claim settlement costs (also known as claim adjustment expenses or loss adjustment expenses) plus losses incurred with respect to net claims. |
Net claims and claim expense ratio | Net claims and claim expenses incurred expressed as a percentage of net earned premiums. |
Net premiums earned | The portion of net premiums written during or prior to a given period that was actually recognized as income during such period. |
Net premiums written | Gross premiums written for a given period less premiums ceded to reinsurers and retrocessionaires during such period. |
Perils | This term refers to the causes of possible loss in the property field, such as fire, windstorm, collision, hail, etc. In the casualty field, the term “hazard” is more frequently used. |
Profit commission | A provision found in some reinsurance agreements that provides for profit sharing. Parties agree to a formula for calculating profit, an allowance for the reinsurer’s expenses, and the cedant’s share of such profit after expenses. |
Property insurance or reinsurance | Insurance or reinsurance that provides coverage to a person with an insurable interest in tangible property for that person’s property loss, damage or loss of use. |
Property per risk | Reinsurance on a treaty basis of individual property risks insured by a ceding company. |
Proportional reinsurance | A generic term describing all forms of reinsurance in which the reinsurer shares a proportional part of the original premiums and losses of the reinsured. (Also known as pro rata reinsurance, quota share reinsurance or participating reinsurance.) In proportional reinsurance, the reinsurer generally pays the ceding company a ceding commission. The ceding commission generally is based on the ceding company’s cost of acquiring the business being reinsured (including commissions, premium taxes, assessments and miscellaneous administrative expense) and also may include a profit factor. See also “Quota Share Reinsurance.” |
Quota share reinsurance | A form of proportional reinsurance in which the reinsurer assumes an agreed percentage of each insurance policy being reinsured and shares all premiums and losses accordingly with the reinsured. See also “Proportional Reinsurance.” |
Reinstatement premium | The premium charged for the restoration of the reinsurance limit of a catastrophe contract to its full amount after payment by the reinsurer of losses as a result of an occurrence. |
Reinsurance | An arrangement in which an insurance company, the reinsurer, agrees to indemnify another insurance or reinsurance company, the ceding company, against all or a portion of the insurance or reinsurance risks underwritten by the ceding company under one or more policies. Reinsurance can provide a ceding company with several benefits, including a reduction in net liability on insurances and catastrophe protection from large or multiple losses. Reinsurance also provides a ceding company with additional underwriting capacity by permitting it to accept larger risks and write more business than would be possible without an equivalent increase in capital and surplus, and facilitates the maintenance of acceptable financial ratios by the ceding company. Reinsurance does not legally discharge the primary insurer from its liability with respect to its obligations to the insured. |
Reinsurance to Close | Also referred to as a RITC, it is a contract to transfer the responsibility for discharging all the liabilities that attach to one year of account of a syndicate into a later year of account of the same or different syndicate in return for a premium. |
Retention | The amount or portion of risk that an insurer retains for its own account. Losses in excess of the retention level are paid by the reinsurer. In proportional treaties, the retention may be a percentage of the original policy’s limit. In excess of loss business, the retention is a dollar amount of loss, a loss ratio or a percentage. |
Retrocedant | A reinsurer who cedes all or a portion of its assumed insurance to another reinsurer. |
Retrocessional reinsurance; Retrocessionaire | A transaction whereby a reinsurer cedes to another reinsurer, the retrocessionaire, all or part of the reinsurance that the first reinsurer has assumed. Retrocessional reinsurance does not legally discharge the ceding reinsurer from its liability with respect to its obligations to the reinsured. Reinsurance companies cede risks to retrocessionaires for reasons similar to those that cause primary insurers to purchase reinsurance: to reduce net liability on insurances, to protect against catastrophic losses, to stabilize financial ratios and to obtain additional underwriting capacity. |
Risks | A term used to denote the physical units of property at risk or the object of insurance protection that are not perils or hazards. Also defined as chance of loss or uncertainty of loss. |
Solvency II | A set of regulatory requirements that codify and harmonize the EU insurance and reinsurance regulation. Among other things, these requirements impact the amount of capital that EU insurance and reinsurance companies are required to hold. Solvency II came into effect on January 1, 2016. |
Specialty lines | Lines of insurance and reinsurance that provide coverage for risks that are often unusual or difficult to place and do not fit the underwriting criteria of standard commercial products carriers. |
Statutory accounting principles | Recording transactions and preparing financial statements in accordance with the rules and procedures prescribed or permitted by Bermuda, U.S. state insurance regulatory authorities including the NAIC and/or in accordance with Lloyd’s specific principles, all of which generally reflect a liquidating, rather than going concern, concept of accounting. |
Stop loss | A form of reinsurance under which the reinsurer pays some or all of a cedant’s aggregate retained losses in excess of a predetermined dollar amount or in excess of a percentage of premium. |
Submission | An unprocessed application for (i) insurance coverage forwarded to a primary insurer by a prospective policyholder or by a broker on behalf of such prospective policyholder, (ii) reinsurance coverage forwarded to a reinsurer by a prospective ceding insurer or by a broker or intermediary on behalf of such prospective ceding insurer or (iii) retrocessional coverage forwarded to a retrocessionaire by a prospective ceding reinsurer or by a broker or intermediary on behalf of such prospective ceding reinsurer. |
Surplus lines insurance | Any type of coverage that cannot be placed with an insurer admitted to do business in a certain jurisdiction. Risks placed in excess and surplus lines markets are often substandard in respect to adverse loss experience, unusual, or unable to be placed in conventional markets due to a shortage of capacity. |
Syndicate | A member or group of members underwriting (re)insurance business at Lloyd’s through the agency of a managing agent or substitute agent to which a syndicate number is assigned. |
Treaty | A reinsurance agreement covering a book or class of business that is automatically accepted on a bulk basis by a reinsurer. A treaty contains common contract terms along with a specific risk definition, data on limit and retention, and provisions for premium and duration. |
Underwriting | The insurer’s or reinsurer’s process of reviewing applications submitted for insurance coverage, deciding whether to accept all or part of the coverage requested and determining the applicable premiums. |
Underwriting capacity | The maximum amount that an insurance company can underwrite. The limit is generally determined by a company’s retained earnings and investment capital. Reinsurance serves to increase a company’s underwriting capacity by reducing its exposure from particular risks. |
Underwriting expense ratio | The ratio of the sum of the acquisition expenses and operational expenses to net premiums earned. |
Underwriting expenses | The aggregate of policy acquisition costs, including commissions, and the portion of administrative, general and other expenses attributable to underwriting operations. |
Unearned premium | The portion of premiums written representing the unexpired portions of the policies or contracts that the insurer or reinsurer has on its books as of a certain date. |
• | a classified Board, whose size is fixed and whose members may be removed by the shareholders only for cause upon a 66 2/3% vote; |
• | restrictions on the ability of shareholders to nominate persons to serve as directors, submit resolutions to a shareholder vote and requisition special general meetings; |
• | a large number of authorized but unissued shares which may be issued by the Board without further shareholder action; and |
• | a 66 2/3% shareholder vote to amend, repeal or adopt any provision inconsistent with several provisions of the Bye-Laws. |
Total shares purchased | Other shares purchased | Shares purchased under repurchase program | Dollar amount still available under repurchase program | |||||||||||||||||||||||
Shares purchased | Average price per share | Shares purchased | Average price per share | Shares purchased | Average price per share | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Beginning dollar amount available to be repurchased | $ | 500.0 | ||||||||||||||||||||||||
October 1 - 31, 2019 | — | $ | — | — | $ | — | — | $ | — | — | ||||||||||||||||
November 1 - 30, 2019 | 131 | $ | 186.22 | 131 | $ | 186.22 | — | $ | — | — | ||||||||||||||||
December 1 - 31, 2019 | 2,847 | $ | 196.02 | 2,847 | $ | 196.02 | — | $ | — | — | ||||||||||||||||
Total | 2,978 | $ | 195.59 | 2,978 | $ | 195.59 | — | $ | — | $ | 500.0 | |||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands, except share and per share data and percentages) | |||||||||||||||||||||
Statements of Operations Data: | |||||||||||||||||||||
Gross premiums written | $ | 4,807,750 | $ | 3,310,427 | $ | 2,797,540 | $ | 2,374,576 | $ | 2,011,310 | |||||||||||
Net premiums written | 3,381,493 | 2,131,902 | 1,871,325 | 1,535,312 | 1,416,183 | ||||||||||||||||
Net premiums earned | 3,338,403 | 1,976,129 | 1,717,575 | 1,403,430 | 1,400,551 | ||||||||||||||||
Net investment income | 423,833 | 261,866 | 222,209 | 181,726 | 152,567 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 414,483 | (175,069 | ) | 135,822 | 141,328 | (68,918 | ) | ||||||||||||||
Net claims and claim expenses incurred | 2,097,021 | 1,120,018 | 1,861,428 | 530,831 | 448,238 | ||||||||||||||||
Acquisition expenses | 762,232 | 432,989 | 346,892 | 289,323 | 238,592 | ||||||||||||||||
Operational expenses | 222,733 | 178,267 | 160,778 | 197,749 | 219,112 | ||||||||||||||||
Underwriting income (loss) | 256,417 | 244,855 | (651,523 | ) | 385,527 | 494,609 | |||||||||||||||
Net income (loss) | 950,267 | 268,917 | (354,671 | ) | 630,048 | 542,242 | |||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | 712,042 | 197,276 | (244,770 | ) | 480,581 | 408,811 | |||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | 16.29 | 4.91 | (6.15 | ) | 11.43 | 9.28 | |||||||||||||||
Dividends per common share | 1.36 | 1.32 | 1.28 | 1.24 | 1.20 | ||||||||||||||||
Weighted average common shares outstanding – diluted | 43,175 | 39,755 | 39,854 | 41,559 | 43,526 | ||||||||||||||||
Return on average common equity | 14.1 | % | 4.7 | % | (5.7 | )% | 11.0 | % | 9.8 | % | |||||||||||
Combined ratio | 92.3 | % | 87.6 | % | 137.9 | % | 72.5 | % | 64.7 | % | |||||||||||
At December 31, | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||
Total investments | $ | 17,368,789 | $ | 11,885,747 | $ | 9,503,439 | $ | 9,316,968 | $ | 8,999,068 | |||||||||||
Total assets | 26,330,094 | 18,676,196 | 15,226,131 | 12,352,082 | 11,555,287 | ||||||||||||||||
Reserve for claims and claim expenses | 9,384,349 | 6,076,271 | 5,080,408 | 2,848,294 | 2,767,045 | ||||||||||||||||
Unearned premiums | 2,530,975 | 1,716,021 | 1,477,609 | 1,231,573 | 889,102 | ||||||||||||||||
Debt | 1,384,105 | 991,127 | 989,623 | 948,663 | 960,495 | ||||||||||||||||
Capital leases | 25,072 | 25,853 | 26,387 | 26,073 | 26,463 | ||||||||||||||||
Preference shares | 650,000 | 650,000 | 400,000 | 400,000 | 400,000 | ||||||||||||||||
Total shareholders’ equity attributable to RenaissanceRe | 5,971,367 | 5,045,080 | 4,391,375 | 4,866,577 | 4,732,184 | ||||||||||||||||
Common shares outstanding | 44,148 | 42,207 | 40,024 | 41,187 | 43,701 | ||||||||||||||||
Book value per common share | $ | 120.53 | $ | 104.13 | $ | 99.72 | $ | 108.45 | $ | 99.13 | |||||||||||
Accumulated dividends | 20.68 | 19.32 | 18.00 | 16.72 | 15.48 | ||||||||||||||||
Book value per common share plus accumulated dividends | $ | 141.21 | $ | 123.45 | $ | 117.72 | $ | 125.17 | $ | 114.61 | |||||||||||
Change in book value per common share plus change in accumulated dividends | 17.1 | % | 5.7 | % | (6.9 | )% | 10.7 | % | 11.3 | % | |||||||||||
Page | |
At December 31, 2019 | Case Reserves | Additional Case Reserves | IBNR | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Property | $ | 1,253,406 | $ | 1,631,223 | $ | 1,189,221 | $ | 4,073,850 | |||||||||
Casualty and Specialty | 1,596,426 | 129,720 | 3,583,913 | 5,310,059 | |||||||||||||
Other | 440 | — | — | 440 | |||||||||||||
Total | $ | 2,850,272 | $ | 1,760,943 | $ | 4,773,134 | $ | 9,384,349 | |||||||||
At December 31, 2018 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Property | $ | 690,718 | $ | 1,308,307 | $ | 1,087,229 | $ | 3,086,254 | |||||||||
Casualty and Specialty | 771,537 | 116,877 | 2,096,979 | 2,985,393 | |||||||||||||
Other | 1,458 | — | 3,166 | 4,624 | |||||||||||||
Total | $ | 1,463,713 | $ | 1,425,184 | $ | 3,187,374 | $ | 6,076,271 | |||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Net reserves as of January 1 | $ | 3,704,050 | $ | 3,493,778 | $ | 2,568,730 | |||||||
Net incurred related to: | |||||||||||||
Current year | 2,123,876 | 1,390,767 | 1,902,424 | ||||||||||
Prior years | (26,855 | ) | (270,749 | ) | (40,996 | ) | |||||||
Total net incurred | 2,097,021 | 1,120,018 | 1,861,428 | ||||||||||
Net paid related to: | |||||||||||||
Current year | 265,649 | 391,061 | 450,527 | ||||||||||
Prior years | 832,405 | 503,708 | 524,298 | ||||||||||
Total net paid | 1,098,054 | 894,769 | 974,825 | ||||||||||
Amounts acquired (1) | 1,858,775 | — | — | ||||||||||
Foreign exchange | 31,260 | (14,977 | ) | 38,445 | |||||||||
Net reserves as of December 31 | 6,593,052 | 3,704,050 | 3,493,778 | ||||||||||
Reinsurance recoverable as of December 31 | 2,791,297 | 2,372,221 | 1,586,630 | ||||||||||
Gross reserves as of December 31 | $ | 9,384,349 | $ | 6,076,271 | $ | 5,080,408 | |||||||
(1) | Represents the fair value of TMR's reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019. |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | (Favorable) adverse development | (Favorable) adverse development | (Favorable) adverse development | ||||||||||
Property | $ | (2,933 | ) | $ | (221,290 | ) | $ | (45,596 | ) | ||||
Casualty and Specialty | (23,882 | ) | (49,262 | ) | 6,183 | ||||||||
Other | (40 | ) | (197 | ) | (1,583 | ) | |||||||
Total favorable development of prior accident years net claims and claim expenses | $ | (26,855 | ) | $ | (270,749 | ) | $ | (40,996 | ) | ||||
Incurred claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | For the year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||
2010 | $ | 720,159 | $ | 681,287 | $ | 636,962 | $ | 657,719 | $ | 691,473 | $ | 696,844 | $ | 706,258 | $ | 708,343 | $ | 681,435 | $ | 731,179 | ||||||||||||||||||||||
2011 | — | 1,559,069 | 1,491,770 | 1,422,659 | 1,393,110 | 1,369,567 | 1,338,187 | 1,333,982 | 1,321,137 | 1,302,141 | ||||||||||||||||||||||||||||||||
2012 | — | — | 559,946 | 429,425 | 395,203 | 375,098 | 356,310 | 344,535 | 336,719 | 331,865 | ||||||||||||||||||||||||||||||||
2013 | — | — | — | 317,258 | 287,694 | 265,570 | 240,945 | 228,622 | 224,748 | 222,939 | ||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 306,731 | 283,608 | 270,618 | 265,820 | 264,754 | 265,229 | ||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 368,766 | 334,572 | 317,865 | 307,088 | 301,733 | ||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 445,532 | 458,525 | 443,135 | 432,269 | ||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 1,640,129 | 1,446,566 | 1,348,260 | ||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 945,829 | 1,054,884 | ||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 1,000,190 | ||||||||||||||||||||||||||||||||
Total | $ | 6,990,689 | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | Reserve for Claims and Claim Expenses at December 31, 2019 | $ Impact of Change Reserve for Claims and Claim Expenses at December 31, 2019 | % Impact of Change on Reserve for Claims and Claim Expenses at December 31, 2019 | % Impact of Change on Net Income for the Year Ended December 31, 2019 | % Impact of Change on Shareholders’ Equity at December 31, 2019 | |||||||||||||
Higher | $ | 4,598,682 | $ | 524,832 | 5.6 | % | (55.2 | )% | (8.8 | )% | ||||||||
Recorded | 4,073,850 | — | — | % | — | % | — | % | ||||||||||
Lower | 3,710,019 | (363,831 | ) | (3.9 | )% | 38.3 | % | 6.1 | % | |||||||||
Incurred claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | For the year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||
2010 | $ | 411,733 | $ | 423,754 | $ | 411,785 | $ | 375,622 | $ | 354,254 | $ | 340,881 | $ | 339,232 | $ | 335,222 | $ | 334,105 | $ | 321,752 | ||||||||||||||||||||||
2011 | — | 429,955 | 434,736 | 404,599 | 375,683 | 368,885 | 360,191 | 349,632 | 356,878 | 362,728 | ||||||||||||||||||||||||||||||||
2012 | — | — | 578,072 | 592,243 | 562,936 | 552,340 | 535,671 | 549,633 | 564,330 | 575,347 | ||||||||||||||||||||||||||||||||
2013 | — | — | — | 595,287 | 573,399 | 545,364 | 520,088 | 508,536 | 493,815 | 476,828 | ||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 718,082 | 714,298 | 719,432 | 700,982 | 683,510 | 688,675 | ||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 802,257 | 822,284 | 858,062 | 838,895 | 831,899 | ||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 955,919 | 1,000,242 | 988,866 | 994,306 | ||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 1,300,584 | 1,278,229 | 1,284,136 | ||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 1,253,151 | 1,283,407 | ||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 1,279,854 | ||||||||||||||||||||||||||||||||
Total | $ | 8,098,932 | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | Estimated Loss Reporting Pattern | $ Impact of Change on Reserves for Claims and Claim Expenses at December 31, 2019 | % Impact of Change on Reserve for Claims and Claim Expenses at December 31, 2019 | % Impact of Change on Net Income for the Year Ended December 31, 2019 | % Impact of Change on Shareholders’ Equity at December 31, 2019 | |||||||||||
Increase expected claims and claim expense ratio by 10% | Slower reporting | $ | 748,368 | 8.0 | % | (78.8 | )% | (12.5 | )% | |||||||
Increase expected claims and claim expense ratio by 10% | Expected reporting | 405,659 | 4.3 | % | (42.7 | )% | (6.8 | )% | ||||||||
Increase expected claims and claim expense ratio by 10% | Faster reporting | 172,705 | 1.8 | % | (18.2 | )% | (2.9 | )% | ||||||||
Expected claims and claim expense ratio | Slower reporting | 306,798 | 3.3 | % | (32.3 | )% | (5.1 | )% | ||||||||
Expected claims and claim expense ratio | Expected reporting | — | — | % | — | % | — | % | ||||||||
Expected claims and claim expense ratio | Faster reporting | (208,570 | ) | (2.2 | )% | 21.9 | % | 3.5 | % | |||||||
Decrease expected claims and claim expense ratio by 10% | Slower reporting | (139,232 | ) | (1.5 | )% | 14.7 | % | 2.3 | % | |||||||
Decrease expected claims and claim expense ratio by 10% | Expected reporting | (410,623 | ) | (4.4 | )% | 43.2 | % | 6.9 | % | |||||||
Decrease expected claims and claim expense ratio by 10% | Faster reporting | (594,629 | ) | (6.3 | )% | 62.6 | % | 10.0 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands, except per share amounts and percentages) | |||||||||||||
Statements of operations highlights | |||||||||||||
Gross premiums written | $ | 4,807,750 | $ | 3,310,427 | $ | 2,797,540 | |||||||
Net premiums written | $ | 3,381,493 | $ | 2,131,902 | $ | 1,871,325 | |||||||
Net premiums earned | $ | 3,338,403 | $ | 1,976,129 | $ | 1,717,575 | |||||||
Net claims and claim expenses incurred | 2,097,021 | 1,120,018 | 1,861,428 | ||||||||||
Acquisition expenses | 762,232 | 432,989 | 346,892 | ||||||||||
Operational expenses | 222,733 | 178,267 | 160,778 | ||||||||||
Underwriting income (loss) | $ | 256,417 | $ | 244,855 | $ | (651,523 | ) | ||||||
Net investment income | $ | 423,833 | $ | 261,866 | $ | 222,209 | |||||||
Net realized and unrealized gains (losses) on investments | 414,483 | (175,069 | ) | 135,822 | |||||||||
Total investment result | $ | 838,316 | $ | 86,797 | $ | 358,031 | |||||||
Net income (loss) | $ | 950,267 | $ | 268,917 | $ | (354,671 | ) | ||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 712,042 | $ | 197,276 | $ | (244,770 | ) | ||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | $ | 16.29 | $ | 4.91 | $ | (6.15 | ) | ||||||
Dividends per common share | $ | 1.36 | $ | 1.32 | $ | 1.28 | |||||||
Key ratios | |||||||||||||
Net claims and claim expense ratio – current accident year | 63.6 | % | 70.4 | % | 110.8 | % | |||||||
Net claims and claim expense ratio – prior accident years | (0.8 | )% | (13.7 | )% | (2.4 | )% | |||||||
Net claims and claim expense ratio – calendar year | 62.8 | % | 56.7 | % | 108.4 | % | |||||||
Underwriting expense ratio | 29.5 | % | 30.9 | % | 29.5 | % | |||||||
Combined ratio | 92.3 | % | 87.6 | % | 137.9 | % | |||||||
Return on average common equity | 14.1 | % | 4.7 | % | (5.7 | )% | |||||||
Book value | December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Book value per common share | $ | 120.53 | $ | 104.13 | $ | 99.72 | |||||||
Accumulated dividends per common share | 20.68 | 19.32 | 18.00 | ||||||||||
Book value per common share plus accumulated dividends | $ | 141.21 | $ | 123.45 | $ | 117.72 | |||||||
Change in book value per common share plus change in accumulated dividends | 17.1 | % | 5.7 | % | (6.9 | )% | |||||||
Balance sheet highlights | December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||
Total assets | $ | 26,330,094 | $ | 18,676,196 | $ | 15,226,131 | |||||||
Total shareholders’ equity attributable to RenaissanceRe | $ | 5,971,367 | $ | 5,045,080 | $ | 4,391,375 | |||||||
• | TMR - the second quarter of 2019 was the first quarter that reflected the results of TMR in our results of operations. As such, our results of operations for 2019, compared to 2018, should be viewed in that context; |
• | Impact of Catastrophe Events - in 2019, we had a net negative impact on our net income available to RenaissanceRe common shareholders of $348.2 million from Hurricane Dorian and Typhoon Faxai (the “Q3 2019 Catastrophe Events”), Typhoon Hagibis and losses associated with aggregate loss contracts (collectively, the “2019 Large Loss Events”). This compares to a net negative impact on our net income available to RenaissanceRe common shareholders of $86.4 million from the combined impacts of the 2018 Large Loss Events and changes in estimates of the 2017 Large Loss Events, in 2018; |
• | Underwriting Results - we generated underwriting income of $256.4 million and had a combined ratio of 92.3% in 2019, compared to underwriting income of $244.9 million and a combined ratio of 87.6% in 2018. Our underwriting income in 2019 was comprised of $209.3 million of underwriting income in our Property segment and $46.0 million of underwriting income in our Casualty and Specialty segment. In comparison, our underwriting income in 2018 was comprised of our Property segment, which generated underwriting income of $262.1 million, and our Casualty and Specialty segment, which incurred an underwriting loss of $17.0 million. |
• | Gross Premiums Written - our gross premiums written increased by $1.5 billion, or 45.2%, to $4.8 billion, in 2019, compared to 2018, with an increase of $670.1 million in the Property segment and an increase of $827.3 million in the Casualty and Specialty segment. These increases were primarily driven by expanded participation on existing transactions, certain new transactions, rate improvements, and the impact of the acquisition of TMR; |
• | Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of $838.3 million in 2019, compared to a gain of $86.8 million in 2018, an increase of $751.5 million. Impacting the investment results were higher returns on portfolios of fixed maturity and short term investments, equity investments trading, catastrophe bonds and investments-related derivatives. Also driving the investment result for 2019 was higher average invested assets, primarily resulting from the acquisition of TMR, combined with capital raised in certain of our consolidated third-party capital vehicles during 2019, including DaVinciRe, Upsilon RFO, Vermeer and Medici, and the subsequent investment of those funds as part of our consolidated investment portfolio; and |
• | Net Income Attributable to Redeemable Noncontrolling Interests - our net income attributable to redeemable noncontrolling interests was $201.5 million in 2019, compared to $41.6 million in 2018. This increase was principally due to improved performance from DaVinciRe and the addition of net income attributable to Vermeer in 2019, compared to 2018, which was negatively impacted by significant losses in DaVinciRe associated with Hurricane Michael, the wildfires in California during the fourth quarter of 2018 (the “Q4 2018 California Wildfires”) and changes in certain losses associated with aggregate loss contracts in 2018 (the “2018 Aggregate Losses”). |
• | Impact of Catastrophe Events - we had a net negative impact on our net income available to RenaissanceRe common shareholders of $216.1 million from the 2018 Large Loss Events, partially offset by a net positive impact of $129.8 million resulting from decreases in the estimates of the net negative impact of the 2017 Large Loss Events, compared to a net negative impact of $720.2 million associated with the 2017 Large Loss Events recorded in 2017; |
• | Underwriting Results - we generated underwriting income of $244.9 million and had a combined ratio of 87.6% in 2018, compared to an underwriting loss of $651.5 million and a combined ratio of 137.9%, in 2017. Our underwriting income in 2018 was comprised of $262.1 million of underwriting income in our Property segment, partially offset by a $17.0 million underwriting loss in our Casualty and Specialty segment. |
• | Large Reinsurance Transactions - our results for 2018 include certain large reinsurance transactions, which are reflected in our Property segment and increased net premiums earned by $72.3 million and contributed $56.2 million to our net income available to RenaissanceRe common shareholders. While we expect large transactions from time to time, we believe they reflect our differentiated strategy, our capability to provide bespoke or large solutions for our clients and our continued focus on serving our clients with unique coverages; |
• | Gross Premiums Written - our gross premiums written increased by $512.9 million, or 18.3%, to $3.3 billion in 2018, compared to 2017, driven primarily by increases of $320.5 million in the Property segment and $192.4 million in the Casualty and Specialty segment. Included in gross premiums written in 2018 were $94.5 million of reinstatement premiums written associated with the 2018 Large Loss Events and changes in the estimates of the 2017 Large Loss Events, and $102.3 million of gross premiums written associated with a large reinsurance transaction, each principally within the Property segment. Included in the gross premiums written in 2017 were $180.2 million of reinstatement premiums written associated with the 2017 Large Loss Events; |
• | Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains and losses on investments, was $86.8 million in 2018, compared to $358.0 million in 2017, a decrease of $271.2 million. The decrease was primarily driven by net realized and unrealized losses on investments of $175.1 million in 2018, compared to net realized and unrealized gains on investments of $135.8 million in 2017. The net realized and unrealized losses on investments in 2018 were driven by net realized and unrealized losses on the fixed maturity investments portfolio, and net realized and unrealized losses on the equity investments trading portfolio. Partially offsetting these items was higher net investment income from our portfolios of fixed maturity investments trading and short term investments, primarily driven by higher average invested assets and the impact of interest rate increases during recent periods; and |
• | Net Income Attributable to Redeemable Noncontrolling Interests - our net income attributable to redeemable noncontrolling interests was $41.6 million in 2018, compared to a net loss attributable to redeemable noncontrolling interests of $132.3 million in 2017. The increase was principally due to DaVinciRe generating underwriting income in 2018 compared to significant underwriting losses in 2017. Our ownership in DaVinciRe was 22.1% at both December 31, 2018 and December 31, 2017. |
Year ended December 31, 2019 | Typhoon Hagibis | Q3 2019 Catastrophe Events | 2019 Aggregate Losses | Total 2019 Large Loss Events | |||||||||||||
(in thousands) | |||||||||||||||||
Net claims and claims expenses incurred | $ | (199,305 | ) | $ | (187,188 | ) | $ | (97,591 | ) | $ | (484,084 | ) | |||||
Assumed reinstatement premiums earned | 28,829 | 24,596 | 183 | 53,608 | |||||||||||||
Ceded reinstatement premiums earned | (219 | ) | (574 | ) | — | (793 | ) | ||||||||||
Lost profit commissions | 7,509 | 3,100 | 1,740 | 12,349 | |||||||||||||
Net negative impact on underwriting result | (163,186 | ) | (160,066 | ) | (95,668 | ) | (418,920 | ) | |||||||||
Redeemable noncontrolling interest - DaVinciRe | 35,078 | 22,677 | 12,932 | 70,687 | |||||||||||||
Net negative impact on net income available to RenaissanceRe common shareholders | $ | (128,108 | ) | $ | (137,389 | ) | $ | (82,736 | ) | $ | (348,233 | ) | |||||
Year ended December 31, 2019 | Typhoon Hagibis | Q3 2019 Catastrophe Events | 2019 Aggregate Losses | Total 2019 Large Loss Events | |||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Net negative impact on Property segment underwriting result | $ | (161,654 | ) | $ | (157,064 | ) | $ | (95,668 | ) | $ | (414,386 | ) | |||||
Net negative impact on Casualty and Specialty segment underwriting result | (1,532 | ) | (3,002 | ) | — | (4,534 | ) | ||||||||||
Net negative impact on underwriting result | $ | (163,186 | ) | $ | (160,066 | ) | $ | (95,668 | ) | $ | (418,920 | ) | |||||
Percentage point impact on consolidated combined ratio | 5.0 | 4.9 | 2.8 | 12.9 | |||||||||||||
Year ended December 31, 2018 | Q3 2018 Catastrophe Events (1) | Q4 2018 Catastrophe Events (2) | 2018 Aggregate Losses | Total 2018 Large Loss Events | Changes in Estimates of the 2017 Large Loss Events (3) | Total | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
(Increase) decrease in net claims and claims expenses incurred | $ | (152,672 | ) | $ | (232,702 | ) | $ | (54,818 | ) | $ | (440,192 | ) | $ | 187,484 | $ | (252,708 | ) | ||||||||
Assumed reinstatement premiums earned | 27,165 | 85,663 | 2 | 112,830 | (18,374 | ) | 94,456 | ||||||||||||||||||
Ceded reinstatement premiums earned | (209 | ) | (26,003 | ) | — | (26,212 | ) | (2 | ) | (26,214 | ) | ||||||||||||||
Lost (earned) profit commissions | 2,279 | 11,971 | (900 | ) | 13,350 | (11,355 | ) | 1,995 | |||||||||||||||||
Net (negative) positive impact on underwriting result | (123,437 | ) | (161,071 | ) | (55,716 | ) | (340,224 | ) | 157,753 | (182,471 | ) | ||||||||||||||
Redeemable noncontrolling interest - DaVinciRe | 20,815 | 87,245 | 16,035 | 124,095 | (27,983 | ) | 96,112 | ||||||||||||||||||
Net (negative) positive impact on net income available to RenaissanceRe common shareholders | $ | (102,622 | ) | $ | (73,826 | ) | $ | (39,681 | ) | $ | (216,129 | ) | $ | 129,770 | $ | (86,359 | ) | ||||||||
(1) | Q3 2018 Catastrophe Events includes Typhoons Jebi, Mangkhut and Trami, Hurricane Florence and the wildfires in California during the third quarter of 2018. |
(2) | Q4 2018 Catastrophe Events includes Hurricane Michael and the Q4 2018 California Wildfires. |
(3) | An initial estimate of the net negative impact of the 2017 Large Loss Events was recorded in our consolidated financial statements during 2017. The amounts noted in the table above reflect changes in the estimates of the net negative impact of the 2017 Large Loss Events recorded in 2018. |
Year ended December 31, 2018 | Q3 2018 Catastrophe Events | Q4 2018 Catastrophe Events | 2018 Aggregate Losses | Total 2018 Large Loss Events | Changes in Estimates of the 2017 Large Loss Events (1) | Total | |||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
Net (negative) positive impact on Property segment underwriting result | $ | (121,875 | ) | $ | (161,071 | ) | $ | (55,716 | ) | $ | (338,662 | ) | $ | 145,724 | $ | (192,938 | ) | ||||||||
Net (negative) positive impact on Casualty and Specialty segment underwriting result (2) | (1,562 | ) | — | — | (1,562 | ) | 12,029 | 10,467 | |||||||||||||||||
Net (negative) positive impact on underwriting result | $ | (123,437 | ) | $ | (161,071 | ) | $ | (55,716 | ) | $ | (340,224 | ) | $ | 157,753 | $ | (182,471 | ) | ||||||||
Percentage point impact on consolidated combined ratio | 6.5 | 8.8 | 2.8 | 18.6 | (8.0 | ) | 10.0 | ||||||||||||||||||
(1) | An initial estimate of the net negative impact of the 2017 Large Loss Events was recorded in our consolidated financial statements during 2017. The amounts noted in the table above reflect changes in the estimates of the net negative impact of the 2017 Large Loss Events recorded in 2018. |
(2) | Impact on Casualty and Specialty segment result includes loss estimates from catastrophe exposed contracts within certain specialty lines of business (i.e., energy, marine, and regional multi-line business). Amounts shown for the Q4 2018 Catastrophe Events, which includes the Q4 2018 California Wildfires, do not reflect impacts from certain casualty liability exposures within the Casualty and Specialty segment associated with the Q4 2018 California Wildfires, as different actuarial techniques are used to estimate losses related to such exposures. |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 2,430,985 | $ | 1,760,926 | $ | 1,440,437 | |||||||
Net premiums written | $ | 1,654,259 | $ | 1,055,188 | $ | 978,014 | |||||||
Net premiums earned | $ | 1,627,494 | $ | 1,050,831 | $ | 931,070 | |||||||
Net claims and claim expenses incurred | 965,424 | 497,895 | 1,297,985 | ||||||||||
Acquisition expenses | 313,761 | 177,912 | 113,816 | ||||||||||
Operational expenses | 139,015 | 112,954 | 94,194 | ||||||||||
Underwriting income (loss) | $ | 209,294 | $ | 262,070 | $ | (574,925 | ) | ||||||
Net claims and claim expenses incurred – current accident year | $ | 968,357 | $ | 719,185 | $ | 1,343,581 | |||||||
Net claims and claim expenses incurred – prior accident years | (2,933 | ) | (221,290 | ) | (45,596 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 965,424 | $ | 497,895 | $ | 1,297,985 | |||||||
Net claims and claim expense ratio – current accident year | 59.5 | % | 68.4 | % | 144.3 | % | |||||||
Net claims and claim expense ratio – prior accident years | (0.2 | )% | (21.0 | )% | (4.9 | )% | |||||||
Net claims and claim expense ratio – calendar year | 59.3 | % | 47.4 | % | 139.4 | % | |||||||
Underwriting expense ratio | 27.8 | % | 27.7 | % | 22.3 | % | |||||||
Combined ratio | 87.1 | % | 75.1 | % | 161.7 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Property | $ | 776,726 | $ | 705,738 | $ | 462,423 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 2,376,765 | $ | 1,549,501 | $ | 1,357,110 | |||||||
Net premiums written | $ | 1,727,234 | $ | 1,076,714 | $ | 893,307 | |||||||
Net premiums earned | $ | 1,710,909 | $ | 925,298 | $ | 786,501 | |||||||
Net claims and claim expenses incurred | 1,131,637 | 622,320 | 565,026 | ||||||||||
Acquisition expenses | 448,678 | 255,079 | 233,077 | ||||||||||
Operational expenses | 84,546 | 64,883 | 66,548 | ||||||||||
Underwriting income (loss) | $ | 46,048 | $ | (16,984 | ) | $ | (78,150 | ) | |||||
Net claims and claim expenses incurred – current accident year | $ | 1,155,519 | $ | 671,582 | $ | 558,843 | |||||||
Net claims and claim expenses incurred – prior accident years | (23,882 | ) | (49,262 | ) | 6,183 | ||||||||
Net claims and claim expenses incurred – total | $ | 1,131,637 | $ | 622,320 | $ | 565,026 | |||||||
Net claims and claim expense ratio – current accident year | 67.5 | % | 72.6 | % | 71.1 | % | |||||||
Net claims and claim expense ratio – prior accident years | (1.4 | )% | (5.3 | )% | 0.7 | % | |||||||
Net claims and claim expense ratio – calendar year | 66.1 | % | 67.3 | % | 71.8 | % | |||||||
Underwriting expense ratio | 31.2 | % | 34.5 | % | 38.1 | % | |||||||
Combined ratio | 97.3 | % | 101.8 | % | 109.9 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Casualty and Specialty | $ | 649,531 | $ | 472,787 | $ | 463,803 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Management fee income | |||||||||||||
Joint ventures | $ | 42,546 | $ | 26,387 | $ | 15,358 | |||||||
Managed funds | 18,636 | 11,462 | 3,659 | ||||||||||
Structured reinsurance products | 35,238 | 33,312 | 31,177 | ||||||||||
Total management fee income | 96,420 | 71,161 | 50,194 | ||||||||||
Performance fee income | |||||||||||||
Joint ventures | $ | 9,660 | $ | 15,093 | $ | 9,429 | |||||||
Managed funds | 420 | 62 | 197 | ||||||||||
Structured reinsurance products | 7,693 | 3,580 | 4,719 | ||||||||||
Total performance fee income | 17,773 | 18,735 | 14,345 | ||||||||||
Total fee income | $ | 114,193 | $ | 89,896 | $ | 64,539 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Fixed maturity investments | $ | 318,503 | $ | 211,973 | $ | 179,624 | |||||||
Short term investments | 56,264 | 33,571 | 11,082 | ||||||||||
Equity investments trading | 4,808 | 4,474 | 3,628 | ||||||||||
Other investments | |||||||||||||
Private equity investments | 14,981 | 477 | 33,999 | ||||||||||
Other | 39,246 | 22,475 | 8,067 | ||||||||||
Cash and cash equivalents | 7,676 | 3,810 | 1,196 | ||||||||||
441,478 | 276,780 | 237,596 | |||||||||||
Investment expenses | (17,645 | ) | (14,914 | ) | (15,387 | ) | |||||||
Net investment income | $ | 423,833 | $ | 261,866 | $ | 222,209 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Gross realized gains | $ | 133,409 | $ | 21,284 | $ | 49,121 | |||||||
Gross realized losses | (43,149 | ) | (91,098 | ) | (38,832 | ) | |||||||
Net realized gains (losses) on fixed maturity investments | 90,260 | (69,814 | ) | 10,289 | |||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 170,183 | (57,310 | ) | 8,479 | |||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 58,891 | (8,784 | ) | (2,490 | ) | ||||||||
Net realized gains on equity investments trading | 31,062 | 27,739 | 80,027 | ||||||||||
Net unrealized gains (losses) on equity investments trading | 64,087 | (66,900 | ) | 39,517 | |||||||||
Net realized and unrealized gains (losses) on investments | $ | 414,483 | $ | (175,069 | ) | $ | 135,822 | ||||||
• | net realized and unrealized gains on our fixed maturity investments trading of $260.4 million in 2019, compared to net realized and unrealized losses of $127.1 million in 2018, an increase of $387.6 million, principally driven by a downward shift in the interest rate yield curve during 2019, compared to an upward shift in the yield curve in 2018; |
• | net realized and unrealized gains on our investment-related derivatives of $58.9 million in 2019, compared to losses of $8.8 million in 2018, an increase of $67.7 million, principally driven by higher derivative exposure during 2019, in addition to the interest rate activity noted above; and |
• | net realized and unrealized gains on equity investments trading of $95.1 million in 2019, compared to net realized and unrealized losses of $39.2 million in 2018, an improvement of $134.3 million, principally driven by higher returns on certain of our larger equity positions during 2019, compared to 2018. |
• | net realized and unrealized losses on our fixed maturity investments trading of $127.1 million in 2018, compared to net realized and unrealized gains of $18.8 million in 2017, a decrease of $145.9 million, principally driven by an upward shift in the interest rate yield curve and a widening of credit spreads during 2018, compared to a tightening of credit spreads and a decrease in interest rates at the longer end of the yield curve in 2017; and |
• | net realized and unrealized losses on equity investments trading of $39.2 million in 2018, compared to net realized and unrealized gains of $119.5 million in 2017, a decrease of $158.7 million, principally driven by lower returns on certain of our larger equity positions during 2018. |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Total foreign exchange (losses) gains | $ | (2,938 | ) | $ | (12,428 | ) | $ | 10,628 | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Tower Hill Companies | $ | 10,337 | $ | 9,605 | $ | (1,647 | ) | ||||||
Top Layer Re | 8,801 | 8,852 | 9,851 | ||||||||||
Other | 4,086 | 17 | (174 | ) | |||||||||
Total equity in earnings of other ventures | $ | 23,224 | $ | 18,474 | $ | 8,030 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Assumed and ceded reinsurance contracts accounted for as derivatives and deposits | $ | 4,473 | $ | 4,807 | $ | 8,655 | |||||||
Other | 476 | 1,162 | 760 | ||||||||||
Total other income | $ | 4,949 | $ | 5,969 | $ | 9,415 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Total corporate expenses | $ | 94,122 | $ | 33,983 | $ | 18,572 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Interest expense | |||||||||||||
$250.0 million Series B 7.50% Senior Notes due 2017 | $ | — | $ | — | $ | 7,813 | |||||||
$250.0 million 5.75% Senior Notes due 2020 | 14,375 | 14,375 | 14,375 | ||||||||||
$300.0 million 3.700% Senior Notes due 2025 | 11,100 | 11,100 | 11,100 | ||||||||||
$300.0 million 3.450% Senior Notes due 2027 | 10,350 | 10,350 | 5,482 | ||||||||||
$400.0 million 3.600% Senior Notes due 2029 | 10,720 | — | — | ||||||||||
$150.0 million 4.750% Senior Notes due 2025 (DaVinciRe) | 7,125 | 7,125 | 7,125 | ||||||||||
Other | 4,694 | 4,119 | (1,702 | ) | |||||||||
Total interest expense | 58,364 | 47,069 | 44,193 | ||||||||||
Preferred share dividends | |||||||||||||
$125.0 million 6.08% Series C Preference Shares | 7,600 | 7,600 | 7,600 | ||||||||||
$275.0 million 5.375% Series E Preference Shares | 14,781 | 14,781 | 14,781 | ||||||||||
$250.0 million 5.750% Series F Preference Shares | 14,375 | 7,707 | — | ||||||||||
Total preferred share dividends | 36,756 | 30,088 | 22,381 | ||||||||||
Total interest expense and preferred share dividends | $ | 95,120 | $ | 77,157 | $ | 66,574 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Income tax (expense) benefit | $ | (17,215 | ) | $ | 6,302 | $ | (26,487 | ) | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests | $ | (201,469 | ) | $ | (41,553 | ) | $ | 132,282 | |||||
At December 31, 2019 | Issued or Drawn | ||||
(in thousands) | |||||
Revolving Credit Facility (1) | $ | — | |||
Bilateral Letter of Credit Facilities | |||||
Secured | 298,063 | ||||
Unsecured | 381,770 | ||||
Funds at Lloyd’s Letter of Credit Facility | 290,000 | ||||
TMR Letters of Credit (2) | 140,923 | ||||
$ | 1,110,756 | ||||
(1) | At December 31, 2019, no amounts were issued or drawn under this facility. |
(2) | These letters of credit were transferred to us in connection with the acquisition of TMR. Refer to “Note 3. Acquisition of Tokio Millennium Re” in our “Notes to the Consolidated Financial Statements” for additional information related to the acquisition of TMR. |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Net cash provided by operating activities | $ | 2,137,195 | $ | 1,221,701 | $ | 1,025,787 | |||||||
Net cash used in investing activities | (2,988,644 | ) | (2,536,613 | ) | (122,434 | ) | |||||||
Net cash provided by financing activities | 1,120,117 | 1,066,340 | 28,860 | ||||||||||
Effect of exchange rate changes on foreign currency cash | 2,478 | (5,098 | ) | 8,222 | |||||||||
Net increase (decrease) in cash and cash equivalents | 271,146 | (253,670 | ) | 940,435 | |||||||||
Cash and cash equivalents, beginning of period | 1,107,922 | 1,361,592 | 421,157 | ||||||||||
Cash and cash equivalents, end of period | $ | 1,379,068 | $ | 1,107,922 | $ | 1,361,592 | |||||||
• | an increase in reserve for claims and claim expenses of $900.6 million as a result of claims and claims expenses incurred of $3.2 billion during 2019 principally driven by current accident year losses, partially offset by claims payments of $2.3 billion primarily associated with prior accident years losses; |
• | an increase in reinsurance balances payable of $658.5 million principally driven by the issuance of non-voting preference shares to investors in Upsilon RFO, which are accounted for as prospective reinsurance and included in reinsurance balances payable on our consolidated balance sheet. Refer to “Note 11. Variable Interest Entities” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares; |
• | an increase in other operating cash flows of $251.4 million primarily reflecting the movement in subscriptions received in advance of the issuance of Upsilon RFO’s non-voting preference shares effective January 1, 2020 and 2019, which were recorded in other liabilities at December 31, 2019 and 2018, respectively. Refer to “Note 11. Variable Interest Entities” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares; |
• | a net decrease in reinsurance recoverable of $129.7 million primarily resulting from the collection of $1.2 billion during 2019, partially offset by increases to reinsurance recoverable principally driven by increases in net claims and claim expenses associated with current accident year losses, combined with the continued execution of our gross-to-net strategy; partially offset by |
• | an increase in premiums receivable of $425.0 million due to the increase in gross premiums written combined with the timing of receipts of those premiums; and |
• | net realized and unrealized gains on investments of $414.5 million principally due to improved performances from our fixed maturity, public equity and investments-related derivative portfolios. |
• | net inflows of $827.1 million related to net third-party redeemable noncontrolling interest share transactions in DaVinciRe, Medici and Vermeer; |
• | net inflows of $396.4 million associated with the April 2, 2019 issuance of $400.0 million principal amount of our 3.600% Senior Notes due April 15, 2029; partially offset by |
• | dividends paid on our common and preference shares of $59.4 million and $36.8 million, respectively. |
• | an increase in reserve for claims and claim expenses of $995.9 million as a result of claims and claims expenses incurred of $2.6 billion during 2018 principally driven by the 2018 Large Loss Events, partially offset by claims payments of $1.6 billion primarily associated with the 2017 Large Loss Events; |
• | an increase in reinsurance balances payable of $913.0 million principally driven by the issuance of non-voting preference shares to investors in Upsilon RFO, following capital being deployed in the vehicle, which are accounted for as prospective reinsurance and included in reinsurance balances payable on our consolidated balance sheet. Refer to “Note 11. Variable Interest Entities” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares; |
• | an increase in unearned premiums of $238.4 million due to the timing of renewals and the increase in gross premiums written in 2018, compared to 2017; partially offset by |
• | an increase in reinsurance recoverable of $785.6 million primarily resulting from the increase in net claims and claim expenses principally driven by the 2018 Large Loss Events, noted above, as we continue to execute our gross-to-net strategy; |
• | a decrease in other operating cash flows of $223.3 million primarily associated with movements in subscriptions received in advance associated with the issuance of Upsilon RFO’s non-voting preference shares effective January 1, 2019 and 2018. Refer to “Note 11. Variable Interest Entities” and “Note. 23 Subsequent Events” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares; |
• | increases in premiums receivable and deferred acquisition costs of $232.6 million and $50.1 million, respectively, due to the timing of payments of our gross premiums written and amortization of deferred acquisition costs, respectively; |
• | net realized and unrealized losses on investments of $175.1 million principally related to our fixed maturity investments portfolio which experienced an upward shift in the interest rate yield curve and a widening of credit spreads during 2018, and our equity investments trading portfolio which was impacted by lower returns on certain of our larger equity positions during 2018; and |
• | an increase of $82.6 million in our prepaid reinsurance premiums due to ceded premiums written associated renewals in 2018. |
• | net inflows of $665.7 million related to a net contribution of capital from third-party shareholders, primarily related to the creation of Vermeer, which was initially capitalized with $600.0 million of participating, non-voting common shares; |
• | net inflows of $241.4 million associated with the issuance of $250.0 million of Depositary Shares (each representing a 1/1000th interest in a share of our 5.750% Series F Preference Shares), net of expenses; |
• | net inflows of $250.0 million associated with the issuance of 1,947,496 of our common shares to State Farm; partially offset by |
• | dividends paid on our common and preference shares of $52.8 million and $30.1 million, respectively. |
At December 31, 2019 | At December 31, 2018 | Change | |||||||||||
(in thousands) | |||||||||||||
Common shareholders’ equity | $ | 5,321,367 | $ | 4,395,080 | $ | 926,287 | |||||||
Preference shares | 650,000 | 650,000 | — | ||||||||||
Total shareholders’ equity attributable to RenaissanceRe | 5,971,367 | 5,045,080 | 926,287 | ||||||||||
3.600% Senior Notes due 2029 | 391,475 | — | 391,475 | ||||||||||
3.450% Senior Notes due 2027 | 296,292 | 295,797 | 495 | ||||||||||
3.700% Senior Notes due 2025 | 298,057 | 297,688 | 369 | ||||||||||
5.750% Senior Notes due 2020 | 249,931 | 249,602 | 329 | ||||||||||
4.750% Senior Notes due 2025 (DaVinciRe) (1) | 148,350 | 148,040 | 310 | ||||||||||
Total debt | 1,384,105 | 991,127 | 392,978 | ||||||||||
Total shareholders’ equity attributable to RenaissanceRe and debt | $ | 7,355,472 | $ | 6,036,207 | $ | 1,319,265 | |||||||
(1) | RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for |
• | our comprehensive income attributable to RenaissanceRe of $748.3 million; |
• | the issuance of 1,739,071 of our common shares to Tokio in connection with the acquisition of TMR; and partially offset by |
• | $59.4 million and $36.8 million of dividends on our common and preference shares, respectively. |
At December 31, | 2019 | 2018 | Change | ||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
U.S. treasuries | $ | 4,467,345 | 25.7 | % | $ | 3,331,411 | 28.0 | % | $ | 1,135,934 | |||||||||
Agencies | 343,031 | 1.9 | % | 174,883 | 1.5 | % | 168,148 | ||||||||||||
Municipal | — | — | % | 6,854 | 0.1 | % | (6,854 | ) | |||||||||||
Non-U.S. government | 497,392 | 2.9 | % | 279,818 | 2.4 | % | 217,574 | ||||||||||||
Non-U.S. government-backed corporate | 321,356 | 1.9 | % | 160,063 | 1.3 | % | 161,293 | ||||||||||||
Corporate | 3,075,660 | 17.7 | % | 2,450,244 | 20.6 | % | 625,416 | ||||||||||||
Agency mortgage-backed | 1,148,499 | 6.6 | % | 817,880 | 6.8 | % | 330,619 | ||||||||||||
Non-agency mortgage-backed | 294,604 | 1.7 | % | 278,680 | 2.4 | % | 15,924 | ||||||||||||
Commercial mortgage-backed | 468,698 | 2.7 | % | 282,294 | 2.4 | % | 186,404 | ||||||||||||
Asset-backed | 555,070 | 3.2 | % | 306,743 | 2.6 | % | 248,327 | ||||||||||||
Total fixed maturity investments, at fair value | 11,171,655 | 64.3 | % | 8,088,870 | 68.1 | % | 3,082,785 | ||||||||||||
Short term investments, at fair value | 4,566,277 | 26.3 | % | 2,586,520 | 21.8 | % | 1,979,757 | ||||||||||||
Equity investments trading, at fair value | 436,931 | 2.5 | % | 310,252 | 2.6 | % | 126,679 | ||||||||||||
Other investments, at fair value | 1,087,377 | 6.3 | % | 784,933 | 6.5 | % | 302,444 | ||||||||||||
Total managed investment portfolio | 17,262,240 | 99.4 | % | 11,770,575 | 99.0 | % | 5,491,665 | ||||||||||||
Investments in other ventures, under equity method | 106,549 | 0.6 | % | 115,172 | 1.0 | % | (8,623 | ) | |||||||||||
Total investments | $ | 17,368,789 | 100.0 | % | $ | 11,885,747 | 100.0 | % | $ | 5,483,042 | |||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||||
December 31, 2019 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Yield to Maturity | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||
Short term investments | $ | 4,566,277 | $ | 4,566,277 | 26.3 | % | 1.6 | % | $ | 4,293,369 | $ | 258,477 | $ | 12,480 | $ | 1,376 | $ | 545 | $ | 30 | |||||||||||||||||||
100.0 | % | 94.0 | % | 5.7 | % | 0.3 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||||
U.S. treasuries | 4,439,533 | 4,467,345 | 25.7 | % | 1.7 | % | — | 4,467,345 | — | — | — | — | |||||||||||||||||||||||||||
Agencies | 342,162 | 343,031 | 1.9 | % | 2.1 | % | — | 343,031 | — | — | — | — | |||||||||||||||||||||||||||
Non-U.S. government | 495,465 | 497,392 | 2.9 | % | 1.6 | % | 262,457 | 204,036 | 11,292 | 18,259 | 1,348 | — | |||||||||||||||||||||||||||
Non-U.S. government-backed corporate | 321,303 | 321,356 | 1.9 | % | 2.0 | % | 169,357 | 113,459 | 37,300 | 550 | 690 | — | |||||||||||||||||||||||||||
Corporate | 3,010,615 | 3,075,660 | 17.7 | % | 3.0 | % | 47,337 | 221,494 | 1,395,626 | 802,372 | 593,371 | 15,460 | |||||||||||||||||||||||||||
Agency mortgage-backed | 1,130,746 | 1,148,499 | 6.6 | % | 2.5 | % | — | 1,148,499 | — | — | — | — | |||||||||||||||||||||||||||
Non-agency securities - Alt A | 218,846 | 229,055 | 1.3 | % | 3.8 | % | 32,026 | 6,671 | 2,227 | 8,000 | 146,434 | 33,697 | |||||||||||||||||||||||||||
Non-agency securities - Prime | 63,421 | 65,549 | 0.4 | % | 3.3 | % | 23,535 | 3,142 | 2,657 | 582 | 20,814 | 14,819 | |||||||||||||||||||||||||||
Commercial mortgage-backed | 489,352 | 468,698 | 2.7 | % | 2.6 | % | 365,272 | 84,859 | 2,701 | 14,270 | 1,596 | — | |||||||||||||||||||||||||||
Asset-backed | 555,971 | 555,070 | 3.2 | % | 3.3 | % | 438,281 | 84,683 | 1,409 | 30,697 | — | — | |||||||||||||||||||||||||||
Total fixed maturity investments | 11,067,414 | 11,171,655 | 64.3 | % | 2.3 | % | 1,338,265 | 6,677,219 | 1,453,212 | 874,730 | 764,253 | 63,976 | |||||||||||||||||||||||||||
100.0 | % | 12.0 | % | 59.8 | % | 13.0 | % | 7.8 | % | 6.8 | % | 0.6 | % | ||||||||||||||||||||||||||
Equity investments trading | 436,931 | 2.5 | % | — | — | — | — | — | 436,931 | ||||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||
Catastrophe bonds | 781,641 | 4.5 | % | — | — | — | — | 781,641 | — | ||||||||||||||||||||||||||||||
Private equity investments | 271,047 | 1.6 | % | — | — | — | — | — | 271,047 | ||||||||||||||||||||||||||||||
Senior secured bank loan funds | 22,598 | 0.1 | % | — | — | — | — | — | 22,598 | ||||||||||||||||||||||||||||||
Hedge funds | 12,091 | 0.1 | % | — | — | — | — | — | 12,091 | ||||||||||||||||||||||||||||||
Total other investments | 1,087,377 | 6.3 | % | — | — | — | — | 781,641 | 305,736 | ||||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | 71.9 | % | 28.1 | % | ||||||||||||||||||||||||||
Investments in other ventures | 106,549 | 0.6 | % | — | — | — | — | — | 106,549 | ||||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||||
Total investment portfolio | $ | 17,368,789 | 100.0 | % | $ | 5,631,634 | $ | 6,935,696 | $ | 1,465,692 | $ | 876,106 | $ | 1,546,439 | $ | 913,222 | |||||||||||||||||||||||
100.0 | % | 32.4 | % | 40.0 | % | 8.4 | % | 5.0 | % | 8.9 | % | 5.3 | % | ||||||||||||||||||||||||||
(1) | The credit ratings included in this table are those assigned by S&P. When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. We have grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A. |
• | Changes in the overall interest rate environment can expose us to “prepayment risk” on our mortgage-backed investments. When interest rates decline, consumers will generally make prepayments on their mortgages and, as a result, our investments in mortgage-backed securities will be repaid to us more quickly than we might have originally anticipated. When we receive these prepayments, our opportunities to reinvest these proceeds back into the investment markets will likely be at reduced interest rates. Conversely, when interest rates increase, consumers will generally make fewer prepayments on their mortgages and, as a result, our investments in mortgage-backed securities will be repaid to us less quickly than we might have originally anticipated. This will increase the duration of our portfolio, which is disadvantageous to us in a rising interest rate environment. |
• | Our investments in mortgage-backed securities are also subject to default risk. This risk is due in part to defaults on the underlying securitized mortgages, which would decrease the fair value of the investment and be disadvantageous to us. Similar risks apply to other asset-backed securities in which we may invest from time to time. |
• | Our investments in debt securities of other corporations are exposed to losses from insolvencies of these corporations, and our investment portfolio can also deteriorate based on reduced credit quality of these corporations. We are also exposed to the impact of widening credit spreads even if specific securities are not downgraded. |
• | Our investments in asset-backed securities are subject to prepayment risks, as noted above, and to the structural risks of these securities. The structural risks primarily emanate from the priority of each security in the issuer’s overall capital structure. We are also exposed to the impact of widening credit spreads. |
• | Within our other investments category, we have funds that invest in non-investment grade fixed income securities as well as securities denominated in foreign currencies. These investments expose us to losses from insolvencies and other credit-related issues and also to widening of credit spreads. We are also exposed to fluctuations in foreign exchange rates that may result in realized losses to us if our exposures are not hedged or if our hedging strategies are not effective. |
At December 31, | 2019 | 2018 | Change | ||||||||||
(in thousands) | |||||||||||||
Financials | $ | 248,189 | $ | 200,357 | $ | 47,832 | |||||||
Communications and technology | 79,206 | 42,333 | 36,873 | ||||||||||
Industrial, utilities and energy | 38,583 | 24,520 | 14,063 | ||||||||||
Consumer | 35,987 | 20,639 | 15,348 | ||||||||||
Healthcare | 29,510 | 18,925 | 10,585 | ||||||||||
Basic materials | 5,456 | 3,478 | 1,978 | ||||||||||
Total | $ | 436,931 | $ | 310,252 | $ | 126,679 | |||||||
At December 31, | 2019 | 2018 | Change | ||||||||||
(in thousands) | |||||||||||||
Catastrophe bonds | $ | 781,641 | $ | 516,571 | $ | 265,070 | |||||||
Private equity investments | 271,047 | 242,647 | 28,400 | ||||||||||
Senior secured bank loan funds | 22,598 | 14,482 | 8,116 | ||||||||||
Hedge funds | 12,091 | 11,233 | 858 | ||||||||||
Total other investments | $ | 1,087,377 | $ | 784,933 | $ | 302,444 | |||||||
At December 31, | 2019 | 2018 | |||||||||||||||||||||
(in thousands, except percentages) | Investment | Ownership % | Carrying Value | Investment | Ownership % | Carrying Value | |||||||||||||||||
Total Tower Hill Companies | 64,750 | 24.9 | % | 36,779 | 64,750 | 24.9 | % | 38,241 | |||||||||||||||
Top Layer Re | 65,375 | 50.0 | % | 35,363 | 65,375 | 50.0 | % | 46,562 | |||||||||||||||
Other | 38,964 | 26.6 | % | 34,407 | 35,862 | 30.6 | % | 30,369 | |||||||||||||||
Total investments in other ventures, under equity method | $ | 169,089 | $ | 106,549 | $ | 165,987 | $ | 115,172 | |||||||||||||||
A.M. Best (1) | S&P (2) | Moody's (3) | Fitch (4) | ||||||
Renaissance Reinsurance Ltd. | A+ | A+ | A1 | A+ | |||||
DaVinci Reinsurance Ltd. | A | A+ | A3 | — | |||||
Renaissance Reinsurance of Europe Unlimited Company | A+ | A+ | — | — | |||||
Renaissance Reinsurance U.S. Inc. | A+ | A+ | — | — | |||||
RenaissanceRe Europe AG | A+ | A+ | — | — | |||||
RenaissanceRe Specialty U.S. | A+ | A+ | — | — | |||||
Top Layer Reinsurance Ltd. | A+ | AA | — | — | |||||
Vermeer Reinsurance Ltd. | A | — | — | — | |||||
RenaissanceRe Syndicate 1458 | — | — | — | — | |||||
Lloyd's Overall Market Rating | A | A+ | — | AA- | |||||
RenaissanceRe | Very Strong | Very Strong | — | — | |||||
(3) | The Moody’s ratings represent the insurer’s financial strength rating. |
(4) | The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. |
At December 31, 2019 | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Long term debt obligations (1) | |||||||||||||||||||||
3.600% Senior Notes due 2029 | $ | 533,747 | $ | 14,400 | $ | 28,800 | $ | 28,800 | $ | 461,747 | |||||||||||
3.450% Senior Notes due 2027 | $ | 377,615 | $ | 10,350 | $ | 20,700 | $ | 20,700 | $ | 325,865 | |||||||||||
3.700% Senior Notes due 2025 | 358,264 | 11,100 | 22,200 | 22,200 | 302,764 | ||||||||||||||||
5.750% Senior Notes due 2020 | 252,918 | 252,918 | — | — | — | ||||||||||||||||
4.750% Senior Notes due 2025 (DaVinciRe) (1) | 187,991 | 7,125 | 14,250 | 14,250 | 152,366 | ||||||||||||||||
Total long term debt obligations | 1,710,535 | 295,893 | 85,950 | 85,950 | 1,242,742 | ||||||||||||||||
Private equity and investment commitments (2) | 411,262 | 411,262 | — | — | — | ||||||||||||||||
Operating lease obligations | 40,657 | 7,912 | 14,651 | 6,809 | 11,285 | ||||||||||||||||
Capital lease obligations | 25,628 | 3,336 | 6,672 | 5,491 | 10,129 | ||||||||||||||||
Payable for investments purchased | 225,275 | 225,275 | — | — | — | ||||||||||||||||
Reserve for claims and claim expenses (3) | 9,384,349 | 2,627,618 | 4,410,643 | 3,002,993 | (656,905 | ) | |||||||||||||||
Total contractual obligations | $ | 11,797,706 | $ | 3,571,296 | $ | 4,517,916 | $ | 3,101,243 | $ | 607,251 | |||||||||||
(1) | Includes contractual interest payments. |
(2) | The private equity and investment commitments do not have a defined contractual commitment date and we have therefore included them in the less than one year category. |
(3) | Because of the nature of the coverages we provide, the amount and timing of the cash flows associated with our policy liabilities will fluctuate, perhaps significantly, and therefore are highly uncertain. We have based our estimates of future claim payments on available relevant sources of loss and allocated loss adjustment expense development data and benchmark industry payment patterns. These benchmarks are revised periodically as new trends emerge. We believe that it is likely that this benchmark data will not be predictive of our future claim payments and that material fluctuations can occur due to the nature of the losses which we insure and the coverages which we provide. |
Interest Rate Shift in Basis Points | |||||||||||||||||||||
At December 31, 2019 | -100 | -50 | Base | 50 | 100 | ||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Fair value of fixed maturity and short term investments | $ | 16,099,052 | $ | 15,918,493 | $ | 15,737,932 | $ | 15,557,371 | $ | 15,376,808 | |||||||||||
Net increase (decrease) in fair value | $ | 361,120 | $ | 180,561 | $ | — | $ | (180,561 | ) | $ | (361,124 | ) | |||||||||
Percentage change in fair value | 2.3 | % | 1.1 | % | — | % | (1.1 | )% | (2.3 | )% | |||||||||||
Interest Rate Shift in Basis Points | |||||||||||||||||||||
At December 31, 2018 | -100 | -50 | Base | 50 | 100 | ||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Fair value of fixed maturity and short term investments | $ | 10,877,855 | $ | 10,777,893 | $ | 10,675,390 | $ | 10,571,175 | $ | 10,466,211 | |||||||||||
Net increase (decrease) in fair value | $ | 202,465 | $ | 102,503 | $ | — | $ | (104,215 | ) | $ | (209,179 | ) | |||||||||
Percentage change in fair value | 1.9 | % | 1.0 | % | — | % | (1.0 | )% | (2.0 | )% | |||||||||||
At December 31, 2019 | AUD | CAD | EUR | GBP | JPY | NZD | Other | Total | |||||||||||||||||||||||||
(in thousands, except for percentages) | |||||||||||||||||||||||||||||||||
Net assets (liabilities) denominated in foreign currencies | $ | 109,915 | $ | 63,473 | $ | 217,652 | $ | (12,856 | ) | $ | (361,083 | ) | $ | (74,042 | ) | $ | (44,393 | ) | $ | (101,334 | ) | ||||||||||||
Net foreign currency derivatives notional amounts | (74,862 | ) | (48,918 | ) | (255,935 | ) | 135,296 | 412,590 | 64,332 | 5,369 | 237,872 | ||||||||||||||||||||||
Total net foreign currency exposure | $ | 35,053 | $ | 14,555 | $ | (38,283 | ) | $ | 122,440 | $ | 51,507 | $ | (9,710 | ) | $ | (39,024 | ) | $ | 136,538 | ||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe | 0.6 | % | 0.2 | % | (0.6 | )% | 2.1 | % | 0.9 | % | (0.2 | )% | (0.7 | )% | 2.3 | % | |||||||||||||||||
Impact of a hypothetical 10% change in total net foreign currency exposure | $ | (3,505 | ) | $ | (1,456 | ) | $ | 3,828 | $ | (12,244 | ) | $ | (5,151 | ) | $ | 971 | $ | 3,902 | $ | (13,654 | ) | ||||||||||||
At December 31, 2018 | AUD | CAD | EUR | GBP | JPY | NZD | Other | Total | |||||||||||||||||||||||||
(in thousands, except for percentages) | |||||||||||||||||||||||||||||||||
Net (liabilities) assets denominated in foreign currencies | $ | (7,428 | ) | $ | 57,425 | $ | 190,573 | $ | (94,769 | ) | $ | (233,041 | ) | $ | (15,495 | ) | $ | (36,968 | ) | $ | (139,703 | ) | |||||||||||
Net foreign currency derivatives notional amounts | (2,360 | ) | (54,656 | ) | (136,404 | ) | 98,195 | 163,909 | 16,413 | 10,030 | 95,127 | ||||||||||||||||||||||
Total net foreign currency exposure | $ | (9,788 | ) | $ | 2,769 | $ | 54,169 | $ | 3,426 | $ | (69,132 | ) | $ | 918 | $ | (26,938 | ) | $ | (44,576 | ) | |||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe | (0.2 | )% | 0.1 | % | 1.1 | % | 0.1 | % | (1.4 | )% | — | % | (0.5 | )% | (0.9 | )% | |||||||||||||||||
Impact of a hypothetical 10% change in total net foreign currency exposure | $ | 979 | $ | (277 | ) | $ | (5,417 | ) | $ | (343 | ) | $ | 6,913 | $ | (92 | ) | $ | 2,694 | $ | 4,458 | |||||||||||||
At December 31, | 2019 | 2018 | |||||
AAA | 35.8 | % | 31.4 | % | |||
AA | 44.0 | % | 44.5 | % | |||
A | 9.3 | % | 8.7 | % | |||
BBB | 5.6 | % | 6.2 | % | |||
Non-investment grade | 4.9 | % | 8.4 | % | |||
Not rated | 0.4 | % | 0.8 | % | |||
Total | 100.0 | % | 100.0 | % | |||
Credit Spread Shift in Basis Points | |||||||||||||||||||||
At December 31, 2019 | -100 | -50 | Base | 50 | 100 | ||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Fair value of fixed income and short term investments | $ | 15,879,718 | $ | 15,833,057 | $ | 15,737,932 | $ | 15,626,356 | $ | 15,514,779 | |||||||||||
Net increase (decrease) in fair value | $ | 141,786 | $ | 95,125 | $ | — | $ | (111,576 | ) | $ | (223,153 | ) | |||||||||
Percentage change in fair value | 0.9 | % | 0.6 | % | — | % | (0.7 | )% | (1.4 | )% | |||||||||||
Credit Spread Shift in Basis Points | |||||||||||||||||||||
At December 31, 2018 | -100 | -50 | Base | 50 | 100 | ||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Fair value of fixed income and short term investments | $ | 10,804,654 | $ | 10,750,213 | $ | 10,675,390 | $ | 10,589,321 | $ | 10,503,252 | |||||||||||
Net increase (decrease) in fair value | $ | 129,264 | $ | 74,823 | $ | — | $ | (86,069 | ) | $ | (172,138 | ) | |||||||||
Percentage change in fair value | 1.2 | % | 0.7 | % | — | % | (0.8 | )% | (1.6 | )% | |||||||||||
At December 31, | 2019 | 2018 | |||||||
(in thousands, except for percentages) | |||||||||
Equity investments trading, at fair value | $ | 436,931 | $ | 310,252 | |||||
Private equity investments, at fair value | 271,047 | 242,647 | |||||||
Investments in other ventures, under equity method | 106,549 | 115,172 | |||||||
Hedge funds, at fair value | 12,091 | 11,233 | |||||||
Total carrying value of investments exposed to equity price risk | $ | 826,618 | $ | 679,304 | |||||
Impact of a hypothetical 10% increase in the carrying value of investments exposed to equity price risk | $ | 82,662 | $ | 67,930 | |||||
Impact of a hypothetical 10% decrease in the carrying value of investments exposed to equity price risk | $ | (82,662 | ) | $ | (67,930 | ) | |||
Number | Description |
2.1 |
3.1 | Memorandum of Association. (P) (1) |
3.2 |
3.3 |
3.4 | Specimen Common Share certificate. (P) (1) |
4.1 |
4.2 |
4.2(a) |
4.3 |
4.3(a) |
4.3(b) |
4.3(c) |
4.4 |
4.4(a) |
4.4(b) |
4.4(c) |
4.4(d) |
4.5 |
4.5(a) |
4.5(b) |
4.6 |
4.6(a) |
4.6(b) |
4.6(c) |
4.7 |
4.7(a) |
4.8 | Description of Securities. |
10.1* |
10.2* |
10.3* |
10.4* |
10.5* |
10.6* |
10.6(a)* |
10.6(b)* |
10.6(c)* |
10.6(d)* |
10.6(e)* | Form of Performance Share Agreement under the RenaissanceRe Holdings Ltd. 2016 Long-Term Incentive Plan (for awards to be made in March 2020). |
10.7 |
10.7(a) |
10.8* |
10.8(a)* |
10.9* |
10.9(a)* |
10.9(b)* |
10.9(c)* |
10.9(d)* |
10.9(e)* |
10.9(f)* |
10.9(g)* |
10.9(h)* |
10.9(i)* |
10.10* |
10.10(a)* |
10.11* |
10.12* |
10.13* |
10.14 |
10.15 |
10.15(a) |
10.15(b) |
10.15(c) |
10.15(d) |
10.15(e) |
10.15(f) |
10.15(g) |
10.15(h) |
10.15(i) |
10.15(j) |
10.15(k) |
10.15(l) |
10.15(m) |
10.16 |
10.17 |
10.17(a) |
10.17(b) |
10.18 |
10.18(a) |
10.18(b) |
10.19 |
10.20 |
10.21 |
10.22 |
10.23+ |
10.24+ |
21.1 | List of Subsidiaries of the Registrant. |
23.1 | Consent of Ernst & Young Ltd. |
31.1 | Certification of Kevin J. O’Donnell, Chief Executive Officer of RenaissanceRe Holdings Ltd., pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. |
31.2 | Certification of Robert Qutub, Chief Financial Officer of RenaissanceRe Holdings Ltd., pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. |
32.1 | Certification of Kevin J. O’Donnell, Chief Executive Officer of RenaissanceRe Holdings Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Robert Qutub, Chief Financial Officer of RenaissanceRe Holdings Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
* | Represents management contract or compensatory plan or arrangement. |
** | Applicable to Stephen H. Weinstein and Ian D. Branagan. |
*** | Applicable to Ross A. Curtis and Robert Qutub. |
+ | Certain schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted schedules upon request by the SEC. |
(1) | Incorporated by reference to the Registration Statement on Form S-1 of RenaissanceRe Holdings Ltd. (Registration No. 33-70008) which was declared effective by the SEC on July 26, 1995. |
(2) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended June 30, 2002, filed with the SEC on August 14, 2002. |
(3) | Incorporated by reference to Exhibit 3.1 to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended March 31, 1998, filed with the SEC on May 14, 1998. |
(4) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on March 18, 2004. |
(5) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on May 28, 2013. |
(6) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on March 18, 2010. |
(7) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on January 24, 2011. |
(8) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended March 31, 2009, filed with the SEC on May 1, 2009. |
(9) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on September 23, 2010. |
(10) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on October 4, 2013. |
(11) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended September 30, 2013, filed with the SEC on November 6, 2013. |
(12) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 22, 2013. |
(13) | Amendment No. 4 to the RenaissanceRe Holdings Ltd. 2001 Stock Incentive Plan is incorporated by reference to Appendix B to RenaissanceRe Holdings Ltd.'s Definitive Proxy Statement, filed with the SEC on April 8, 2010. The RenaissanceRe Holdings Ltd. 2010 Performance-Based Equity Incentive Plan is incorporated by reference to Appendix A to RenaissanceRe Holdings Ltd.'s Definitive Proxy Statement, filed with the SEC on April 8, 2010. |
(14) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 19, 2010. |
(15) | Incorporated by reference to Exhibit 99.2 to the Registration Statement on Form S-8 (Registration No. 333-90758) dated June 19, 2002. |
(16) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended March 31, 2007, filed with the SEC on May 2, 2007. |
(17) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on August 13, 2010. |
(18) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q, for the period ended September 30, 2004, filed with the SEC on November 9, 2004. |
(19) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 23, 2012. |
(20) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2002, filed with the SEC on March 31, 2003 (SEC File Number 001-14428). |
(21) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on December 30, 2014. |
(22) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on March 25, 2015. |
(23) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on May 21, 2015. |
(24) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on July 8, 2015. |
(25) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on November 25, 2015. |
(26) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on December 31, 2015. |
(27) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 19, 2016. |
(28) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended June 30, 2016, filed with the SEC on July 27, 2016. |
(29) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended September 30, 2016, filed with the SEC on November 2, 2016. |
(30) | Incorporated by reference to RenaissanceRe Holdings Ltd.'s Current Report on Form 8-K, filed with the SEC on November 10, 2016. |
(31) | Incorporated by reference to RenaissanceRe Holdings Ltd.'s Current Report on Form 8-K, filed with the SEC on November 18, 2016. |
(32) | Incorporated by reference to RenaissanceRe Holdings Ltd.'s Current Report on Form 8-K, filed with the SEC on January 5, 2017. |
(33) | Incorporated by reference to RenaissanceRe Holding Ltd’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 23, 2017. |
(34) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on May 26, 2017. |
(35) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on June 29, 2017. |
(36) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on November 13, 2017. |
(37) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on January 3, 2018. |
(38) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 9, 2018. |
(39) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on May 16, 2018. |
(40) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on June 19, 2018. |
(41) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on November 5, 2018. |
(42) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on November 9, 2018. |
(43) | Incorporated by reference to RenaissanceRe Holding Ltd.’s Current Report on Form 8-K, filed with the SEC on November 14, 2018. |
(44) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on January 3, 2019. |
(45) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 7, 2019. |
(46) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the Commission on March 22, 2019. |
(47) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on March 25, 2019. |
(48) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the Commission on March 26, 2019. |
(49) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the Commission on April 2, 2019. |
(50) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended March 31, 2019, filed with the SEC on May 8, 2019. |
(51) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on June 24, 2019. |
(52) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Quarterly Report on Form 10-Q for the period ended June 30, 2019, filed with the SEC on July 25, 2019. |
(53) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on November 12, 2019. |
(54) | Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the SEC on January 3, 2020. |
Date: | February 7, 2020 | RENAISSANCERE HOLDINGS LTD. | |
/s/ Kevin J. O’Donnell | |||
Kevin J. O’Donnell | |||
Chief Executive Officer and President |
Signature | Title | Date | ||
/s/ Kevin J. O’Donnell | Chief Executive Officer, President and Director (Principal Executive Officer) | February 7, 2020 | ||
Kevin J. O’Donnell | ||||
/s/ Robert Qutub | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 7, 2020 | ||
Robert Qutub | ||||
/s/ James C. Fraser | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | February 7, 2020 | ||
James C. Fraser | ||||
/s/ James L. Gibbons | Non-Executive Chair of the Board of Directors | February 7, 2020 | ||
James L. Gibbons | ||||
/s/ David C. Bushnell | Director | February 7, 2020 | ||
David C. Bushnell | ||||
/s/ Brian G. J. Gray | Director | February 7, 2020 | ||
Brian G. J. Gray | ||||
/s/ Jean D. Hamilton | Director | February 7, 2020 | ||
Jean D. Hamilton | ||||
/s/ Duncan P. Hennes | Director | February 7, 2020 | ||
Duncan P. Hennes | ||||
/s/ Henry Klehm, III | Director | February 7, 2020 | ||
Henry Klehm, III | ||||
/s/ Valerie Rahmani | Director | February 7, 2020 | ||
Valerie Rahmani | ||||
/s/ Carol P. Sanders | Director | February 7, 2020 | ||
Carol P. Sanders | ||||
/s/ Anthony M. Santomero | Director | February 7, 2020 | ||
Anthony M. Santomero | ||||
/s/ Cynthia Trudell | Director | February 7, 2020 | ||
Cynthia Trudell |
Page | |
Valuation of Reserve for Incurred But Not Reported Claim Reserves | |
Description of the Matter | At December 31, 2019, the liability for incurred but not reported claim reserves, including additional case reserves (ACR) for the property segment (collectively referred to as IBNR claim reserves), represented $6,404.4 million of the total $9,384.3 million of reserves for claims and claim expenses. As disclosed in Notes 2 and 8 of the consolidated financial statements, reserves for claims and claim expenses represent estimates that are established by management based on actuarially and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts the Company sells for both their casualty and specialty segment and their property segment. |
There is significant uncertainty inherent in estimating IBNR claim reserves. In determining management’s estimate of the IBNR claim reserves for the casualty and specialty segment, management’s analysis includes consideration of loss development patterns; historical ultimate loss ratios; and the presence of individual large losses. In particular, the estimate is sensitive to the selection and weighting of actuarial methods, expected trends in claim severity and frequency, the time lag inherent in reporting information and industry or event trends. In determining management’s estimate of the ultimate loss settlement costs which is used to determine the IBNR claim reserves for the property segment, which generally involve catastrophic events, management’s analysis includes available information derived from claims information from certain customers and brokers, industry assessments of losses from the events, proprietary models, and the terms and conditions of the Company’s contracts. In particular, the estimate is sensitive to the preliminary nature of the information available, the magnitude and relative infrequency of the events, the expected duration of the respective claims development period, inadequacies in the data provided to the relevant date by industry participants and the potential for further reporting lags or insufficiencies, and in certain large events, significant uncertainty as to the form of the claims and legal issues under the relevant terms of insurance and reinsurance contracts. | |
Auditing management’s estimate for IBNR claim reserves was complex and required the involvement of our actuarial specialists due to the high degree of subjectivity inherent in management’s methods and assumptions used in the calculations which have a significant effect on the valuation of the reserves. | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the relevant controls over the estimation process for IBNR claim reserves. This included, among others, evaluating management’s review controls over the actuarial methods selected to determine the estimate and the assumptions and methods used for the Company’s determination of their recorded estimate. |
To test the IBNR claim reserves that are included in claims and claim expense reserves, our audit procedures included, among others, utilizing the assistance of actuarial specialists. Our actuarial specialists evaluated the selection of standard reserving methods applied, considering the methods used in prior periods and those applied in the broader insurance industry. To evaluate the significant assumptions used by management in the reserving methods for the casualty and specialty segment, we compared the significant assumptions, including loss development patterns, ultimate loss ratios, and the impact of individual large losses, to company experience and current industry benchmarks. To evaluate the significant assumptions used by management in their actuarial methods in the property segment we compared the significant assumptions, including the severity of industry losses by event and development patterns, to current industry benchmarks such as incurred to ultimate loss ratios and industry loss levels. In addition, for casualty, specialty and property claims and claims expense reserves, we developed a range of reasonable reserve estimates including performing independent projections for a significant portion of the Company’s classes of business and compared the range of reserve estimates to the Company’s recorded claims and claim expense reserves. |
Valuation of Value of Business Acquired for TMR Acquisition | |
Description of the Matter | As disclosed in Note 3 of the consolidated financial statements, on March 22, 2019, the Company completed its acquisitions of Tokio Millennium Re AG and Tokio Millennium Re (UK) Ltd (collectively referred to as TMR) for the net purchase price of $1.1 billion. The purchase price was allocated to the acquired assets and liabilities of TMR, which resulted in the Company recording an asset for the Value of Business Acquired (VOBA) of $287.6 million at the acquisition date. The Company’s December 31, 2019 balance of VOBA represents the unamortized present value of the expected underwriting profit, net of reinsurance less the costs to service the related expenses. VOBA is expected to amortize over approximately two years from the acquisition date, as the in-force contracts as of the acquisition date expire. |
There is significant uncertainty inherent in determining the VOBA asset, primarily due to the sensitivity of the valuation to estimate loss ratios by line of business used to calculate the underwriting profit, weighted average cost of capital, risk premium and expected payout patterns. | |
Auditing management’s VOBA asset as a result of its acquisition of TMR was complex and required the involvement of our actuarial specialists due to the high degree of subjectivity inherent in management’s assumptions used in the model which have a significant effect on the valuation of VOBA. | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the process to calculate VOBA, which included, among others, evaluating management’s review controls over the assumptions used to develop such estimate. |
To test the VOBA asset, we performed audit procedures that included, among others, the involvement of our actuarial specialists to assist in evaluating management’s calculation of VOBA. To evaluate the significant assumptions used by management in the model, we compared their loss ratio estimate selections to a range of reasonable actuarial estimates based on data as of the acquisition date, the expected payout patterns of the claims and claim expenses and the expected investment yields used in the determination of the discount rate to both industry benchmarks and historical data, and the risk premium used to a margin derived using appropriate industry capital factors by type of business and jurisdiction. We independently calculated a range of reasonable valuations of the VOBA asset, which we compared to management’s estimate of VOBA. We also evaluated the amortization period selected by management and compared it to the remaining duration of the contracts of business in-force that were acquired. |
December 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Fixed maturity investments trading, at fair value - amortized cost $11,067,414 at December 31, 2019 (2018 - $8,163,962) (Notes 5 and 6) | $ | 11,171,655 | $ | 8,088,870 | |||
Short term investments, at fair value (Notes 5 and 6) | 4,566,277 | 2,586,520 | |||||
Equity investments trading, at fair value (Notes 5 and 6) | 436,931 | 310,252 | |||||
Other investments, at fair value (Notes 5 and 6) | 1,087,377 | 784,933 | |||||
Investments in other ventures, under equity method (Note 5) | 106,549 | 115,172 | |||||
Total investments | 17,368,789 | 11,885,747 | |||||
Cash and cash equivalents | 1,379,068 | 1,107,922 | |||||
Premiums receivable | 2,599,896 | 1,537,188 | |||||
Prepaid reinsurance premiums (Note 7) | 767,781 | 616,185 | |||||
Reinsurance recoverable (Notes 7 and 8) | 2,791,297 | 2,372,221 | |||||
Accrued investment income | 72,461 | 51,311 | |||||
Deferred acquisition costs and value of business acquired | 663,991 | 476,661 | |||||
Receivable for investments sold | 78,369 | 256,416 | |||||
Other assets | 346,216 | 135,127 | |||||
Goodwill and other intangible assets (Note 4) | 262,226 | 237,418 | |||||
Total assets | $ | 26,330,094 | $ | 18,676,196 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses (Note 8) | $ | 9,384,349 | $ | 6,076,271 | |||
Unearned premiums | 2,530,975 | 1,716,021 | |||||
Debt (Note 9) | 1,384,105 | 991,127 | |||||
Reinsurance balances payable | 2,830,691 | 1,902,056 | |||||
Payable for investments purchased | 225,275 | 380,332 | |||||
Other liabilities | 932,024 | 513,609 | |||||
Total liabilities | 17,287,419 | 11,579,416 | |||||
Commitments and Contingencies (Note 20) | |||||||
Redeemable noncontrolling interests (Note 10) | 3,071,308 | 2,051,700 | |||||
Shareholders’ Equity (Note 12) | |||||||
Preference shares: $1.00 par value – 16,010,000 shares issued and outstanding at December 31, 2019 (2018 – 16,010,000) | 650,000 | 650,000 | |||||
Common shares: $1.00 par value – 44,148,116 shares issued and outstanding at December 31, 2019 (2018 – 42,207,390) | 44,148 | 42,207 | |||||
Additional paid-in capital | 568,277 | 296,099 | |||||
Accumulated other comprehensive loss | (1,939 | ) | (1,433 | ) | |||
Retained earnings | 4,710,881 | 4,058,207 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 5,971,367 | 5,045,080 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 26,330,094 | $ | 18,676,196 |
2019 | 2018 | 2017 | |||||||||
Revenues | |||||||||||
Gross premiums written | $ | 4,807,750 | $ | 3,310,427 | $ | 2,797,540 | |||||
Net premiums written (Note 7) | $ | 3,381,493 | $ | 2,131,902 | $ | 1,871,325 | |||||
Increase in unearned premiums | (43,090 | ) | (155,773 | ) | (153,750 | ) | |||||
Net premiums earned (Note 7) | 3,338,403 | 1,976,129 | 1,717,575 | ||||||||
Net investment income (Note 5) | 423,833 | 261,866 | 222,209 | ||||||||
Net foreign exchange (losses) gains | (2,938 | ) | (12,428 | ) | 10,628 | ||||||
Equity in earnings of other ventures (Note 5) | 23,224 | 18,474 | 8,030 | ||||||||
Other income | 4,949 | 5,969 | 9,415 | ||||||||
Net realized and unrealized gains (losses) on investments (Note 5) | 414,483 | (175,069 | ) | 135,822 | |||||||
Total revenues | 4,201,954 | 2,074,941 | 2,103,679 | ||||||||
Expenses | |||||||||||
Net claims and claim expenses incurred (Notes 7 and 8) | 2,097,021 | 1,120,018 | 1,861,428 | ||||||||
Acquisition expenses | 762,232 | 432,989 | 346,892 | ||||||||
Operational expenses | 222,733 | 178,267 | 160,778 | ||||||||
Corporate expenses | 94,122 | 33,983 | 18,572 | ||||||||
Interest expense (Note 9) | 58,364 | 47,069 | 44,193 | ||||||||
Total expenses | 3,234,472 | 1,812,326 | 2,431,863 | ||||||||
Income (loss) before taxes | 967,482 | 262,615 | (328,184 | ) | |||||||
Income tax (expense) benefit (Note 15) | (17,215 | ) | 6,302 | (26,487 | ) | ||||||
Net income (loss) | 950,267 | 268,917 | (354,671 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests (Note 10) | (201,469 | ) | (41,553 | ) | 132,282 | ||||||
Net income (loss) attributable to RenaissanceRe | 748,798 | 227,364 | (222,389 | ) | |||||||
Dividends on preference shares (Note 12) | (36,756 | ) | (30,088 | ) | (22,381 | ) | |||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 712,042 | $ | 197,276 | $ | (244,770 | ) | ||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic (Note 13) | $ | 16.32 | $ | 4.91 | $ | (6.15 | ) | ||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted (Note 13) | $ | 16.29 | $ | 4.91 | $ | (6.15 | ) |
2019 | 2018 | 2017 | |||||||||
Comprehensive income (loss) | |||||||||||
Net income (loss) | $ | 950,267 | $ | 268,917 | $ | (354,671 | ) | ||||
Change in net unrealized gains on investments, net of tax | 2,173 | (1,657 | ) | (909 | ) | ||||||
Foreign currency translation adjustments, net of tax | (2,679 | ) | — | — | |||||||
Comprehensive income (loss) | 949,761 | 267,260 | (355,580 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests | (201,469 | ) | (41,553 | ) | 132,282 | ||||||
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (201,469 | ) | (41,553 | ) | 132,282 | ||||||
Comprehensive income (loss) attributable to RenaissanceRe | $ | 748,292 | $ | 225,707 | $ | (223,298 | ) | ||||
Disclosure regarding net unrealized gains (losses) | |||||||||||
Total net realized and unrealized holding gains (losses) on investments | $ | 2,173 | $ | (1,657 | ) | $ | (909 | ) | |||
Change in net unrealized (losses) gains on investments | $ | 2,173 | $ | (1,657 | ) | $ | (909 | ) |
2019 | 2018 | 2017 | |||||||||
Preference shares | |||||||||||
Balance – January 1 | $ | 650,000 | $ | 400,000 | $ | 400,000 | |||||
Issuance of shares (Note 12) | — | 250,000 | — | ||||||||
Balance – December 31 | 650,000 | 650,000 | 400,000 | ||||||||
Common shares | |||||||||||
Balance – January 1 | 42,207 | 40,024 | 41,187 | ||||||||
Issuance of shares (Note 12) | 1,739 | 1,947 | — | ||||||||
Repurchase of shares | — | — | (1,322 | ) | |||||||
Exercise of options and issuance of restricted stock awards (Notes 12 and 17) | 202 | 236 | 159 | ||||||||
Balance – December 31 | 44,148 | 42,207 | 40,024 | ||||||||
Additional paid-in capital | |||||||||||
Balance – January 1 | 296,099 | 37,355 | 216,558 | ||||||||
Issuance of shares (Note 12) | 248,259 | 248,053 | — | ||||||||
Repurchase of shares | — | — | (187,269 | ) | |||||||
Offering expenses | — | (8,552 | ) | — | |||||||
Change in redeemable noncontrolling interest | (342 | ) | 837 | 119 | |||||||
Exercise of options and issuance of restricted stock awards (Notes 12 and 17) | 24,261 | 18,406 | 7,947 | ||||||||
Balance – December 31 | 568,277 | 296,099 | 37,355 | ||||||||
Accumulated other comprehensive (loss) income | |||||||||||
Balance – January 1 | (1,433 | ) | 224 | 1,133 | |||||||
Change in net unrealized gains on investments, net of tax | 2,173 | (1,657 | ) | (909 | ) | ||||||
Foreign currency translation adjustments, net of tax | (2,679 | ) | — | — | |||||||
Balance – December 31 | (1,939 | ) | (1,433 | ) | 224 | ||||||
Retained earnings | |||||||||||
Balance – January 1 | 4,058,207 | 3,913,772 | 4,207,699 | ||||||||
Cumulative effect of adoption of ASU 2016-09 (Note 2) | — | — | 2,213 | ||||||||
Net income (loss) | 950,267 | 268,917 | (354,671 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests (Note 10) | (201,469 | ) | (41,553 | ) | 132,282 | ||||||
Dividends on common shares | (59,368 | ) | (52,841 | ) | (51,370 | ) | |||||
Dividends on preference shares | (36,756 | ) | (30,088 | ) | (22,381 | ) | |||||
Balance – December 31 | 4,710,881 | 4,058,207 | 3,913,772 | ||||||||
Total shareholders’ equity | $ | 5,971,367 | $ | 5,045,080 | $ | 4,391,375 |
2019 | 2018 | 2017 | |||||||||
Cash flows provided by operating activities | |||||||||||
Net income (loss) | $ | 950,267 | $ | 268,917 | $ | (354,671 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||
Amortization, accretion and depreciation | (58,964 | ) | 123 | 31,242 | |||||||
Equity in undistributed (earnings) losses of other ventures | (762 | ) | (3,772 | ) | 6,295 | ||||||
Net realized and unrealized (gains) losses on investments | (414,483 | ) | 175,069 | (135,822 | ) | ||||||
Net unrealized (gains) losses included in net investment income | (12,221 | ) | 8,309 | (24,737 | ) | ||||||
Change in: | |||||||||||
Premiums receivable | (424,973 | ) | (232,566 | ) | (317,299 | ) | |||||
Prepaid reinsurance premiums | (11,798 | ) | (82,639 | ) | (92,286 | ) | |||||
Reinsurance recoverable | 129,665 | (785,591 | ) | (1,307,066 | ) | ||||||
Deferred acquisition costs | 118,676 | (50,110 | ) | (91,226 | ) | ||||||
Reserve for claims and claim expenses | 900,562 | 995,863 | 2,232,114 | ||||||||
Unearned premiums | 51,343 | 238,412 | 246,036 | ||||||||
Reinsurance balances payable | 658,532 | 912,966 | 315,107 | ||||||||
Other | 251,351 | (223,280 | ) | 518,100 | |||||||
Net cash provided by operating activities | 2,137,195 | 1,221,701 | 1,025,787 | ||||||||
Cash flows used in investing activities | |||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 17,313,940 | 11,585,576 | 9,490,669 | ||||||||
Purchases of fixed maturity investments trading | (17,919,343 | ) | (12,489,972 | ) | (10,093,532 | ) | |||||
Net (purchases) sales of equity investments trading | (7,841 | ) | 14,156 | 115,837 | |||||||
Net (purchases) sales of short term investments | (1,900,741 | ) | (1,436,389 | ) | 364,011 | ||||||
Net purchases of other investments | (202,878 | ) | (199,475 | ) | (19,419 | ) | |||||
Net purchases of investments in other ventures | (2,717 | ) | (21,473 | ) | — | ||||||
Return of investment from investment in other ventures | 11,250 | 8,464 | 20,000 | ||||||||
Net (purchases) sales of other assets | (4,108 | ) | 2,500 | — | |||||||
Net purchase of TMR | (276,206 | ) | — | — | |||||||
Net cash used in investing activities | (2,988,644 | ) | (2,536,613 | ) | (122,434 | ) | |||||
Cash flows provided by financing activities | |||||||||||
Dividends paid – RenaissanceRe common shares | (59,368 | ) | (52,841 | ) | (51,370 | ) | |||||
Dividends paid – preference shares | (36,756 | ) | (30,088 | ) | (22,381 | ) | |||||
RenaissanceRe common share repurchases | — | — | (188,591 | ) | |||||||
RenaissanceRe common share issuance | — | 250,000 | — | ||||||||
Issuance of debt, net of expenses | 396,411 | — | 295,866 | ||||||||
Repayment of debt | — | — | (250,000 | ) | |||||||
Issuance of preference shares, net of expenses | — | 241,448 | — | ||||||||
Net third-party redeemable noncontrolling interest share transactions | 827,083 | 665,683 | 260,475 | ||||||||
Taxes paid on withholding shares | (7,253 | ) | (7,862 | ) | (15,139 | ) | |||||
Net cash provided by financing activities | 1,120,117 | 1,066,340 | 28,860 | ||||||||
Effect of exchange rate changes on foreign currency cash | 2,478 | (5,098 | ) | 8,222 | |||||||
Net increase (decrease) in cash and cash equivalents | 271,146 | (253,670 | ) | 940,435 | |||||||
Cash and cash equivalents, beginning of year | 1,107,922 | 1,361,592 | 421,157 | ||||||||
Cash and cash equivalents, end of year | $ | 1,379,068 | $ | 1,107,922 | $ | 1,361,592 | |||||
Supplemental disclosure of cash flow information | |||||||||||
Income taxes paid | $ | 9,749 | $ | 341 | $ | 343 | |||||
Interest paid | $ | 53,220 | $ | 45,623 | $ | 44,171 |
• | On March 22, 2019, the Company’s wholly owned subsidiary, RenaissanceRe Specialty Holdings (UK) Limited (“RenaissanceRe Specialty Holdings”), completed its previously announced purchase of all of the share capital of RenaissanceRe Europe AG (formerly known as Tokio Millennium Re AG) (“RenaissanceRe Europe”), RenaissanceRe (UK) Limited (formerly known as Tokio Millennium Re (UK) Limited) (“RenaissanceRe UK”), and their respective subsidiaries (collectively, “TMR”) pursuant to a Stock Purchase Agreement by and among the Company, Tokio Marine & Nichido Fire Insurance Co. Ltd. (“Tokio”) and, with respect to certain sections only, Tokio Marine Holdings, Inc. entered into on October 30, 2018 (the “TMR Stock Purchase Agreement”) (the “TMR Stock Purchase”). TMR comprised the treaty reinsurance business of Tokio Marine Holdings, Inc. The results of operations of TMR from March 22, 2019, through December 31, 2019, are reflected in the Company’s results of operations for the year ended December 31, 2019. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information regarding the TMR Stock Purchase. |
• | Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. |
• | Renaissance Reinsurance U.S. Inc. (“Renaissance Reinsurance U.S.”) is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas. |
• | RenaissanceRe Underwriting Managers U.S. LLC, a specialty reinsurance agency domiciled in the state of Connecticut, provides specialty treaty reinsurance solutions on both a quota share and excess of loss basis; and writes business on behalf of RenaissanceRe Specialty U.S. Ltd. (“RenaissanceRe Specialty U.S.”), a Bermuda-domiciled reinsurer, which operates subject to U.S. federal income tax, and RenaissanceRe Syndicate 1458 (“Syndicate 1458”). |
• | Syndicate 1458 is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member. RenaissanceRe Syndicate Management Ltd. (“RSML”), a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458. |
• | RenaissanceRe Europe, a Swiss-domiciled reinsurance company, which has branches in Australia, Bermuda, the U.K. and the U.S., provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. |
• | RenaissanceRe UK, a U.K.-domiciled reinsurance company in run-off, provided property, casualty and specialty reinsurance coverages on a worldwide basis. RenaissanceRe UK was placed into run-off effective July 1, 2015, from which date all new and renewal business was written by the U.K. branch of RenaissanceRe Europe. On February 4, 2020, RenaissanceRe Specialty Holdings entered into an agreement to sell RenaissanceRe UK to an investment vehicle managed by AXA Liabilities Managers, an affiliate of AXA XL. The sale is expected to close in 2020 and is subject to regulatory approval. |
• | The Company also manages property, casualty and specialty reinsurance business written on behalf of joint ventures, which include Top Layer Reinsurance Ltd. (“Top Layer Re”), recorded under the equity method of accounting, and DaVinci Reinsurance Ltd. (“DaVinci”). Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of DaVinci’s |
• | RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted fund, incorporated under the laws of Bermuda. Medici’s objective is to seek to invest substantially all of its assets in various insurance-based investment instruments that have returns primarily tied to property catastrophe risk. Third-party investors have subscribed for a portion of the participating, non-voting common shares of Medici. Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of Medici, through its wholly-owned parent, RenaissanceRe Fund Holdings Ltd. (“Fund Holdings”), the results of Medici and Fund Holdings are consolidated in the Company’s consolidated financial statements and all significant inter-company transactions have been eliminated. Redeemable noncontrolling interest - Medici represents the interests of external parties with respect to the net income and shareholders’ equity of Medici. |
• | Upsilon RFO Re Ltd., formerly known as Upsilon Reinsurance II Ltd. (“Upsilon RFO”), a Bermuda domiciled special purpose insurer (“SPI”), is a managed joint venture formed by the Company principally to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. Upsilon RFO is considered a variable interest entity (“VIE”) and the Company is considered the primary beneficiary. As a result, Upsilon RFO is consolidated by the Company and all significant inter-company transactions have been eliminated. |
• | RenaissanceRe Upsilon Fund Ltd. (“Upsilon Fund”), an exempted Bermuda segregated accounts company was formed by the Company to provide a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. As a segregated accounts company, Upsilon Fund is permitted to establish segregated accounts to invest in and hold identified pools of assets and liabilities. Each pool of assets and liabilities in each segregated account is structured to be ring-fenced from any claims from the creditors of Upsilon Fund’s general account and from the creditors of other segregated accounts within Upsilon Fund. Third-party investors purchase redeemable, non-voting preference shares linked to specific segregated accounts of Upsilon Fund and own 100% of these shares. Upsilon Fund is an investment company and is considered a VIE. The Company is not considered the primary beneficiary of Upsilon Fund and, as a result, the Company does not consolidate the financial position and results of operations of Upsilon Fund. |
• | Effective December 17, 2018, the Company formed Vermeer Reinsurance Ltd. (“Vermeer”), an exempted Bermuda reinsurer, with PGGM, a Dutch pension fund manager. Vermeer provides capacity focused on risk remote layers in the U.S. property catastrophe market. Vermeer is managed by RUM in return for a management fee. The Company maintains a majority voting control of Vermeer, while PGGM retains economic benefits. Vermeer is considered a VIE, as it has voting rights that are not proportional to its participating rights and the Company is the primary beneficiary. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. The Company does not currently expect its voting or economic interest in Vermeer to fluctuate. |
• | Fibonacci Reinsurance Ltd. ("Fibonacci Re"), a Bermuda-domiciled SPI, was formed in 2016 to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raises capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. Fibonacci Re is considered a VIE. The Company is not considered the primary beneficiary of Fibonacci Re and, as a result, the Company does not consolidate the financial position and results of operations of Fibonacci Re. |
• | Effective December 22, 2017, the Company and Reinsurance Group of America, Incorporated closed an initiative (“Langhorne”) to source third-party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne Holdings LLC (“Langhorne Holdings”) is a company that owns and manages certain reinsurance entities within Langhorne. Langhorne Partners LLC (“Langhorne |
• | In connection with the acquisition of TMR, the Company manages Shima Reinsurance Ltd. (“Shima Re”), Norwood Re Ltd. (“Norwood Re”) and Blizzard Re Ltd. (“Blizzard Re”) (together, the “TMR managed third-party capital vehicles”), which provide third-party investors with access to reinsurance risk formerly managed by TMR. Following the closing of the acquisition, the retrocessionaires providing reinsurance to TMR on certain TMR managed third-party capital vehicles’ legacy portfolios of in-force and expired contracts were replaced. The TMR managed third-party capital vehicles no longer write new business. |
Special Dividend | |||||||||
Special Dividend paid to common shareholders of Tokio and holders of Tokio equity awards | $ | 500,000 | |||||||
RenaissanceRe common shares | |||||||||
Common shares issued by RenaissanceRe to Tokio | 1,739,071 | ||||||||
Common share price of RenaissanceRe (1) | $ | 143.75 | |||||||
Market value of RenaissanceRe common shares issued by RenaissanceRe to Tokio | 249,998 | ||||||||
Cash consideration | |||||||||
Cash consideration paid by RenaissanceRe as acquisition consideration | 813,595 | ||||||||
Total purchase price | 1,563,593 | ||||||||
Less: Special Dividend paid to Tokio | (500,000 | ) | |||||||
Net purchase price | $ | 1,063,593 | |||||||
(1) | RenaissanceRe common share price was based on the 30-day trailing volume weighted average price of $143.7539 as of market close on March 15, 2019, which approximates fair value. |
Shareholders’ equity of TMR at March 22, 2019 | $ | 1,032,961 | |||
Adjustments for fair value, by applicable balance sheet caption: | |||||
Net deferred acquisition costs and value of business acquired | (56,788 | ) | |||
Net reserve for claims and claim expenses | 67,782 | ||||
Goodwill and intangible assets at March 22, 2019 of TMR | (6,569 | ) | |||
Total adjustments for fair value by applicable balance sheet caption before tax impact | 4,425 | ||||
Other assets - net deferred tax liability related to fair value adjustments and value of business acquired | (2,606 | ) | |||
Total adjustments for fair value by applicable balance sheet caption, net of tax | 1,819 | ||||
Adjustments for fair value of the identifiable intangible assets: | |||||
Identifiable indefinite lived intangible assets (insurance licenses) | 6,800 | ||||
Identifiable finite lived intangible assets (top broker relationships and renewal rights) | 11,200 | ||||
Identifiable intangible assets before tax impact | 18,000 | ||||
Other assets - deferred tax liability on identifiable intangible assets | (2,281 | ) | |||
Total adjustments for fair value of the identifiable intangible assets and value of business acquired, net of tax | 15,719 | ||||
Total adjustments for fair value by applicable balance sheet caption, identifiable intangible assets and value of business acquired, net of tax | 17,538 | ||||
Shareholders’ equity of TMR at fair value | 1,050,499 | ||||
Total net purchase price paid by RenaissanceRe | 1,063,593 | ||||
Excess purchase price over the fair value of net assets acquired assigned to goodwill | $ | 13,094 | |||
• | Net deferred acquisition costs and value of business acquired (“VOBA”) - to reflect the elimination of TMR’s net deferred acquisition costs, partially offset by the establishment of the value of business acquired asset, which represents the present value of the expected underwriting profit within the unearned premiums liability, net of reinsurance, less costs to service the related policies and a risk premium. The adjustment for VOBA will be amortized to acquisition expenses over approximately two years, as the contracts for business in-force as of the acquisition date expire. VOBA at March 22, 2019 was $287.6 million; |
• | Reserve for claims and claim expenses - to reflect a decrease related to the present value of the net unpaid claims and claim expenses based on the estimated payout pattern, partially offset by an increase in net claims and claim expenses related to the estimated market based risk margin. The risk margin represents the estimated cost of capital required by a market participant to assume the net claims and claim expenses. This will be amortized using the projected discount and risk margin patterns of the net claims and claims expenses as of the acquisition date; |
• | Identifiable indefinite lived and finite lived intangible assets - to establish the fair value of identifiable intangible assets related to the acquisition of TMR described in detail below; and |
• | Other assets - to reflect the net deferred tax liability on identifiable intangible assets. |
Amount | Economic Useful Life | ||||||
Top broker relationships | $ | 10,000 | 10.0 years | ||||
Renewal rights | 1,200 | 15.0 years | |||||
Insurance licenses | 6,800 | Indefinite | |||||
Gross identifiable intangible assets related to the acquisition of TMR, at March 22, 2019 | 18,000 | ||||||
Accumulated amortization (from March 22, 2019 through December 31, 2019) | 810 | ||||||
Net identifiable intangible assets related to the acquisition of TMR at December 31, 2019 | $ | 17,190 | |||||
• | Top broker relationships - the value of TMR’s relationships with their top four brokers (Marsh & McLennan Companies, Inc., Aon plc, Willis Group Holdings Public Limited Company and Jardine Lloyd Thompson Group plc.) after taking into consideration the expectation of the renewal of these relationships and the associated expenses. These will be amortized on a straight-line basis over the economic useful life as of the acquisition date; |
• | Renewal rights - the value of policy renewal rights after taking into consideration written premiums on assumed retention ratios and the insurance cash flows and the associated equity cash flows from these renewal policies over the expected life of the renewals. These will be amortized on a straight-line basis over the economic useful life as of the acquisition date; and |
• | Insurance licenses - the value of acquired insurance licenses, which provide the ability to write reinsurance in all 50 states of the U.S. and the District of Columbia. |
Year ended December 31, 2019 (1) | |||||
Total revenues | $ | 922,727 | |||
Net income available to RenaissanceRe common shareholders (2) | $ | 99,169 | |||
(1) | Includes the net contribution from the acquisition of TMR since March 22, 2019 that has been included in the Company’s consolidated statements of operations and comprehensive income through December 31, 2019. |
(2) | Includes $49.7 million of corporate expenses associated with the acquisition and integration of TMR for the year ended December 31, 2019. |
Year ended December 31, | 2019 | 2018 | |||||||
Total revenues | $ | 4,542,979 | $ | 3,338,903 | |||||
Net income available to RenaissanceRe common shareholders | $ | 768,719 | $ | 281,974 | |||||
Goodwill and other intangible assets | |||||||||||||
Goodwill | Other intangible assets | Total | |||||||||||
Balance as of December 31, 2017 | |||||||||||||
Gross amount | $ | 199,889 | $ | 96,599 | $ | 296,488 | |||||||
Accumulated impairment losses and amortization | (2,299 | ) | (51,044 | ) | (53,343 | ) | |||||||
197,590 | 45,555 | 243,145 | |||||||||||
Amortization | — | (5,727 | ) | (5,727 | ) | ||||||||
Balance as of December 31, 2018 | |||||||||||||
Gross amount | 199,889 | 96,599 | 296,488 | ||||||||||
Accumulated impairment losses and amortization | (2,299 | ) | (56,771 | ) | (59,070 | ) | |||||||
197,590 | 39,828 | 237,418 | |||||||||||
Acquired during the year | 13,094 | 18,000 | 31,094 | ||||||||||
Amortization | — | (6,286 | ) | (6,286 | ) | ||||||||
Balance as of December 31, 2019 | |||||||||||||
Gross amount | 212,983 | 114,599 | 327,582 | ||||||||||
Accumulated impairment losses and amortization | (2,299 | ) | (63,057 | ) | (65,356 | ) | |||||||
$ | 210,684 | $ | 51,542 | $ | 262,226 | ||||||||
Goodwill and other intangible assets included in investments in other ventures, under equity method | |||||||||||||
Goodwill | Other intangible assets | Total | |||||||||||
Balance as of December 31, 2017 | |||||||||||||
Gross amount | $ | 12,318 | $ | 51,796 | $ | 64,114 | |||||||
Accumulated impairment losses and amortization | (4,500 | ) | (42,880 | ) | (47,380 | ) | |||||||
7,818 | 8,916 | 16,734 | |||||||||||
Acquired during the year | 2,780 | 11,108 | 13,888 | ||||||||||
Amortization | — | (2,886 | ) | (2,886 | ) | ||||||||
Balance as of December 31, 2018 | |||||||||||||
Gross amount | 15,098 | 62,904 | 78,002 | ||||||||||
Accumulated impairment losses and amortization | (4,500 | ) | (45,766 | ) | (50,266 | ) | |||||||
10,598 | 17,138 | 27,736 | |||||||||||
Acquired during the year | — | 4 | 4 | ||||||||||
Amortization | — | (2,816 | ) | (2,816 | ) | ||||||||
Balance as of December 31, 2019 | |||||||||||||
Gross amount | 15,098 | 62,908 | 78,006 | ||||||||||
Accumulated impairment losses and amortization | (4,500 | ) | (48,582 | ) | (53,082 | ) | |||||||
$ | 10,598 | $ | 14,326 | $ | 24,924 | ||||||||
Other intangible assets | |||||||||||||
At December 31, 2019 | Gross carrying value | Accumulated amortization and impairment losses | Total | ||||||||||
Customer relationships and customer lists | $ | 108,651 | $ | (69,298 | ) | $ | 39,353 | ||||||
Value of business acquired | 20,200 | (20,200 | ) | — | |||||||||
Software | 12,230 | (12,230 | ) | — | |||||||||
Licenses | 26,186 | — | 26,186 | ||||||||||
Patents and intellectual property | 4,500 | (4,500 | ) | — | |||||||||
Covenants not-to-compete | 4,030 | (4,030 | ) | — | |||||||||
Trademarks and trade names | 1,710 | (1,381 | ) | 329 | |||||||||
$ | 177,507 | $ | (111,639 | ) | $ | 65,868 | |||||||
Other intangible assets | |||||||||||||
At December 31, 2018 | Gross carrying value | Accumulated amortization and impairment losses | Total | ||||||||||
Customer relationships and customer lists | $ | 97,419 | $ | (60,221 | ) | $ | 37,198 | ||||||
Value of business acquired | 20,200 | (20,200 | ) | — | |||||||||
Software | 12,230 | (12,230 | ) | — | |||||||||
Licenses | 19,414 | — | 19,414 | ||||||||||
Patents and intellectual property | 4,500 | (4,500 | ) | — | |||||||||
Covenants not-to-compete | 4,030 | (4,030 | ) | — | |||||||||
Trademarks and trade names | 1,710 | (1,356 | ) | 354 | |||||||||
$ | 159,503 | $ | (102,537 | ) | $ | 56,966 | |||||||
Other intangibles | Other intangible assets included in investments in other ventures, under equity method | Total | |||||||||||
2020 | $ | 6,317 | $ | 1,955 | $ | 8,272 | |||||||
2021 | 5,990 | 1,095 | 7,085 | ||||||||||
2022 | 5,602 | 1,095 | 6,697 | ||||||||||
2023 | 5,173 | 631 | 5,804 | ||||||||||
2024 | 4,716 | 194 | 4,910 | ||||||||||
2024 and thereafter | 6,705 | 209 | 6,914 | ||||||||||
Total remaining amortization expense | 34,503 | 5,179 | 39,682 | ||||||||||
Indefinite lived | 17,039 | 9,147 | 26,186 | ||||||||||
Total | $ | 51,542 | $ | 14,326 | $ | 65,868 | |||||||
December 31, 2019 | December 31, 2018 | ||||||||
U.S. treasuries | $ | 4,467,345 | $ | 3,331,411 | |||||
Agencies | 343,031 | 174,883 | |||||||
Municipal | — | 6,854 | |||||||
Non-U.S. government | 497,392 | 279,818 | |||||||
Non-U.S. government-backed corporate | 321,356 | 160,063 | |||||||
Corporate | 3,075,660 | 2,450,244 | |||||||
Agency mortgage-backed | 1,148,499 | 817,880 | |||||||
Non-agency mortgage-backed | 294,604 | 278,680 | |||||||
Commercial mortgage-backed | 468,698 | 282,294 | |||||||
Asset-backed | 555,070 | 306,743 | |||||||
Total fixed maturity investments trading | $ | 11,171,655 | $ | 8,088,870 | |||||
At December 31, 2019 | Amortized Cost | Fair Value | |||||||
Due in less than one year | $ | 543,687 | $ | 544,636 | |||||
Due after one through five years | 5,467,501 | 5,522,769 | |||||||
Due after five through ten years | 2,386,467 | 2,420,602 | |||||||
Due after ten years | 211,424 | 216,777 | |||||||
Mortgage-backed | 1,902,365 | 1,911,801 | |||||||
Asset-backed | 555,970 | 555,070 | |||||||
Total | $ | 11,067,414 | $ | 11,171,655 | |||||
December 31, 2019 | December 31, 2018 | ||||||||
Financials | $ | 248,189 | $ | 200,357 | |||||
Communications and technology | 79,206 | 42,333 | |||||||
Industrial, utilities and energy | 38,583 | 24,520 | |||||||
Consumer | 35,987 | 20,639 | |||||||
Healthcare | 29,510 | 18,925 | |||||||
Basic materials | 5,456 | 3,478 | |||||||
Total | $ | 436,931 | $ | 310,252 | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Fixed maturity investments | $ | 318,503 | $ | 211,973 | $ | 179,624 | |||||||
Short term investments | 56,264 | 33,571 | 11,082 | ||||||||||
Equity investments | 4,808 | 4,474 | 3,628 | ||||||||||
Other investments | |||||||||||||
Private equity investments | 14,981 | 477 | 33,999 | ||||||||||
Other | 39,246 | 22,475 | 8,067 | ||||||||||
Cash and cash equivalents | 7,676 | 3,810 | 1,196 | ||||||||||
441,478 | 276,780 | 237,596 | |||||||||||
Investment expenses | (17,645 | ) | (14,914 | ) | (15,387 | ) | |||||||
Net investment income | $ | 423,833 | $ | 261,866 | $ | 222,209 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Gross realized gains | $ | 133,409 | $ | 21,284 | $ | 49,121 | |||||||
Gross realized losses | (43,149 | ) | (91,098 | ) | (38,832 | ) | |||||||
Net realized gains (losses) on fixed maturity investments | 90,260 | (69,814 | ) | 10,289 | |||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 170,183 | (57,310 | ) | 8,479 | |||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 58,891 | (8,784 | ) | (2,490 | ) | ||||||||
Net realized gains on equity investments trading sold during the period | 31,062 | 27,739 | 80,027 | ||||||||||
Net unrealized gains (losses) on equity investments trading still held at reporting date | 64,087 | (66,900 | ) | 39,517 | |||||||||
Net realized and unrealized gains (losses) on equity investments trading | 95,149 | (39,161 | ) | 119,544 | |||||||||
Net realized and unrealized gains (losses) on investments | $ | 414,483 | $ | (175,069 | ) | $ | 135,822 | ||||||
At December 31, | 2019 | 2018 | |||||||
Catastrophe bonds | $ | 781,641 | $ | 516,571 | |||||
Private equity investments | 271,047 | 242,647 | |||||||
Senior secured bank loan funds | 22,598 | 14,482 | |||||||
Hedge funds | 12,091 | 11,233 | |||||||
Total other investments | $ | 1,087,377 | $ | 784,933 | |||||
2019 | 2018 | ||||||||||||||
At December 31, | Ownership % | Carrying Value | Ownership % | Carrying Value | |||||||||||
Tower Hill Companies | 24.9 | % | 36,779 | 24.9 | % | 38,241 | |||||||||
Top Layer Re | 50.0 | % | 35,363 | 50.0 | % | 46,562 | |||||||||
Other | 26.6 | % | 34,407 | 30.6 | % | 30,369 | |||||||||
Total investments in other ventures, under equity method | $ | 106,549 | $ | 115,172 | |||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Tower Hill Companies | $ | 10,337 | $ | 9,605 | $ | (1,647 | ) | ||||||
Top Layer Re | 8,801 | 8,852 | 9,851 | ||||||||||
Other | 4,086 | 17 | (174 | ) | |||||||||
Total equity in earnings of other ventures | $ | 23,224 | $ | 18,474 | $ | 8,030 | |||||||
• | Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access. The fair value is determined by multiplying the quoted price by the quantity held by the Company; |
• | Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and |
• | Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability. |
At December 31, 2019 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. treasuries | $ | 4,467,345 | $ | 4,467,345 | $ | — | $ | — | |||||||||
Agencies | 343,031 | — | 343,031 | — | |||||||||||||
Non-U.S. government | 497,392 | — | 497,392 | — | |||||||||||||
Non-U.S. government-backed corporate | 321,356 | — | 321,356 | — | |||||||||||||
Corporate | 3,075,660 | — | 3,075,660 | — | |||||||||||||
Agency mortgage-backed | 1,148,499 | — | 1,148,499 | — | |||||||||||||
Non-agency mortgage-backed | 294,604 | — | 294,604 | — | |||||||||||||
Commercial mortgage-backed | 468,698 | — | 468,698 | — | |||||||||||||
Asset-backed | 555,070 | — | 555,070 | — | |||||||||||||
Total fixed maturity investments | 11,171,655 | 4,467,345 | 6,704,310 | — | |||||||||||||
Short term investments | 4,566,277 | — | 4,566,277 | — | |||||||||||||
Equity investments trading | 436,931 | 436,931 | — | — | |||||||||||||
Other investments | |||||||||||||||||
Catastrophe bonds | 781,641 | — | 781,641 | — | |||||||||||||
Private equity investments (1) | 271,047 | — | — | 74,634 | |||||||||||||
Senior secured bank loan funds (1) | 22,598 | — | — | — | |||||||||||||
Hedge funds (1) | 12,091 | — | — | — | |||||||||||||
Total other investments | 1,087,377 | — | 781,641 | 74,634 | |||||||||||||
Other assets and (liabilities) | |||||||||||||||||
Assumed and ceded (re)insurance contracts (2) | 4,731 | — | — | 4,731 | |||||||||||||
Derivatives (3) | 16,937 | (1,020 | ) | 17,957 | — | ||||||||||||
Total other assets and (liabilities) | 21,668 | (1,020 | ) | 17,957 | 4,731 | ||||||||||||
$ | 17,283,908 | $ | 4,903,256 | $ | 12,070,185 | $ | 79,365 | ||||||||||
(1) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
(2) | Included in assumed and ceded (re)insurance contracts at December 31, 2019 was $32.9 million of other assets and $28.2 million of other liabilities. |
(3) | Refer to “Note 19. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. |
At December 31, 2018 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. treasuries | $ | 3,331,411 | $ | 3,331,411 | $ | — | $ | — | |||||||||
Agencies | 174,883 | — | 174,883 | — | |||||||||||||
Municipal | 6,854 | — | 6,854 | — | |||||||||||||
Non-U.S. government | 279,818 | — | 279,818 | — | |||||||||||||
Non-U.S. government-backed corporate | 160,063 | — | 160,063 | — | |||||||||||||
Corporate | 2,450,244 | — | 2,450,244 | — | |||||||||||||
Agency mortgage-backed | 817,880 | — | 817,880 | — | |||||||||||||
Non-agency mortgage-backed | 278,680 | — | 278,680 | — | |||||||||||||
Commercial mortgage-backed | 282,294 | — | 282,294 | — | |||||||||||||
Asset-backed | 306,743 | — | 306,743 | — | |||||||||||||
Total fixed maturity investments | 8,088,870 | 3,331,411 | 4,757,459 | — | |||||||||||||
Short term investments | 2,586,520 | — | 2,586,520 | — | |||||||||||||
Equity investments trading | 310,252 | 310,252 | — | — | |||||||||||||
Other investments | |||||||||||||||||
Catastrophe bonds | 516,571 | — | 516,571 | — | |||||||||||||
Private equity investments (1) | 242,647 | — | — | 54,545 | |||||||||||||
Senior secured bank loan funds (1) | 14,482 | — | — | — | |||||||||||||
Hedge funds (1) | 11,233 | — | — | — | |||||||||||||
Total other investments | 784,933 | — | 516,571 | 54,545 | |||||||||||||
Other assets and (liabilities) | |||||||||||||||||
Assumed and ceded (re)insurance contracts (2) | (8,359 | ) | — | — | (8,359 | ) | |||||||||||
Derivatives (3) | 12,399 | 484 | 11,915 | — | |||||||||||||
Total other assets and (liabilities) | 4,040 | 484 | 11,915 | (8,359 | ) | ||||||||||||
$ | 11,774,615 | $ | 3,642,147 | $ | 7,872,465 | $ | 46,186 | ||||||||||
(1) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
(2) | Included in assumed and ceded (re)insurance contracts at December 31, 2018 was $5.0 million of other assets and $13.3 million of other liabilities. |
(3) | Refer to “Note 19. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. |
At December 31, 2019 | Fair Value (Level 3) | Valuation Technique | Unobservable Inputs | Low | High | Weighted Average or Actual | |||||||||||||||
Other investments | |||||||||||||||||||||
Private equity investment | $ | 10,327 | External valuation model | Manager pricing | $ | 103.20 | $ | 103.77 | $ | 103.20 | |||||||||||
Private equity investments | 64,307 | Internal valuation model | Discount rate | 8.0 | % | 10.0 | % | 9.0 | % | ||||||||||||
Liquidity discount | n/a | n/a | 15.0 | % | |||||||||||||||||
Total other investments | 74,634 | ||||||||||||||||||||
Other assets and (liabilities) | |||||||||||||||||||||
Assumed and ceded (re)insurance contracts | 501 | Internal valuation model | Bond price | $ | 100.29 | $ | 106.26 | $ | 103.58 | ||||||||||||
Liquidity discount | n/a | n/a | 1.3 | % | |||||||||||||||||
Assumed and ceded (re)insurance contracts | (8,767 | ) | Internal valuation model | Net undiscounted cash flows | n/a | n/a | $ | (11,179 | ) | ||||||||||||
Expected loss ratio | n/a | n/a | 33.1 | % | |||||||||||||||||
Discount rate | n/a | n/a | 1.7 | % | |||||||||||||||||
Assumed and ceded (re)insurance contracts | 12,997 | Internal valuation model | Expected loss ratio | n/a | n/a | 0.0 | % | ||||||||||||||
Total other assets and (liabilities) | 4,731 | ||||||||||||||||||||
Total other assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | $ | 79,365 | |||||||||||||||||||
Other investments | Other assets and (liabilities) | Total | |||||||||||
Balance - January 1, 2019 | $ | 54,545 | $ | (8,359 | ) | $ | 46,186 | ||||||
Total realized and unrealized gains (losses) | |||||||||||||
Included in other income | 2,126 | (2,347 | ) | (221 | ) | ||||||||
Total foreign exchange gains | 5 | — | 5 | ||||||||||
Purchases | 17,958 | (4,553 | ) | 13,405 | |||||||||
Settlements | — | 20 | 20 | ||||||||||
Amounts acquired (1) | — | 19,970 | 19,970 | ||||||||||
Balance - December 31, 2019 | $ | 74,634 | $ | 4,731 | $ | 79,365 | |||||||
(1) | Represents the fair value of the other assets acquired from TMR, measured at fair value on a recurring basis using Level 3 inputs at March 22, 2019. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of TMR. |
Other investments | Other assets and (liabilities) | Total | |||||||||||
Balance - January 1, 2018 | $ | — | $ | (2,952 | ) | $ | (2,952 | ) | |||||
Total realized and unrealized gains | |||||||||||||
Included in other income | — | 2,901 | 2,901 | ||||||||||
Purchases | 54,545 | (9,291 | ) | 45,254 | |||||||||
Settlements | — | 983 | 983 | ||||||||||
Balance - December 31, 2018 | $ | 54,545 | $ | (8,359 | ) | $ | 46,186 | ||||||
2019 | 2018 | ||||||||
Other investments | $ | 1,087,377 | $ | 784,933 | |||||
Other assets | $ | 32,944 | $ | 4,968 | |||||
Other liabilities | $ | 28,213 | $ | 13,327 | |||||
At December 31, 2019 | Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period (Minimum Days) | Redemption Notice Period (Maximum Days) | ||||||||||
Private equity investments | $ | 196,413 | $ | 351,028 | See below | See below | See below | ||||||||
Senior secured bank loan funds | 22,598 | 8,702 | See below | See below | See below | ||||||||||
Hedge funds | 12,091 | — | See below | See below | See below | ||||||||||
Total other investments measured using net asset valuations | $ | 231,102 | $ | 359,730 | |||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Premiums written | |||||||||||||
Direct | $ | 461,409 | $ | 337,587 | $ | 290,730 | |||||||
Assumed | 4,346,341 | 2,972,840 | 2,506,810 | ||||||||||
Ceded | (1,426,257 | ) | (1,178,525 | ) | (926,215 | ) | |||||||
Net premiums written | $ | 3,381,493 | $ | 2,131,902 | $ | 1,871,325 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 404,525 | $ | 292,219 | $ | 244,285 | |||||||
Assumed | 4,348,261 | 2,779,796 | 2,307,219 | ||||||||||
Ceded | (1,414,383 | ) | (1,095,886 | ) | (833,929 | ) | |||||||
Net premiums earned | $ | 3,338,403 | $ | 1,976,129 | $ | 1,717,575 | |||||||
Claims and claim expenses | |||||||||||||
Gross claims and claim expenses incurred | $ | 3,221,778 | $ | 2,578,536 | $ | 3,420,388 | |||||||
Claims and claim expenses recovered | (1,124,757 | ) | (1,458,518 | ) | (1,558,960 | ) | |||||||
Net claims and claim expenses incurred | $ | 2,097,021 | $ | 1,120,018 | $ | 1,861,428 | |||||||
At December 31, 2019 | Case Reserves | Additional Case Reserves | IBNR | Total | |||||||||||||
Property | $ | 1,253,406 | $ | 1,631,223 | $ | 1,189,221 | $ | 4,073,850 | |||||||||
Casualty and Specialty | 1,596,426 | 129,720 | 3,583,913 | 5,310,059 | |||||||||||||
Other | 440 | — | — | 440 | |||||||||||||
Total | $ | 2,850,272 | $ | 1,760,943 | $ | 4,773,134 | $ | 9,384,349 | |||||||||
At December 31, 2018 | |||||||||||||||||
Property | $ | 690,718 | $ | 1,308,307 | $ | 1,087,229 | $ | 3,086,254 | |||||||||
Casualty and Specialty | 771,537 | 116,877 | 2,096,979 | 2,985,393 | |||||||||||||
Other | 1,458 | — | 3,166 | 4,624 | |||||||||||||
Total | $ | 1,463,713 | $ | 1,425,184 | $ | 3,187,374 | $ | 6,076,271 | |||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Net reserves as of beginning of period | $ | 3,704,050 | $ | 3,493,778 | $ | 2,568,730 | |||||||
Net incurred related to: | |||||||||||||
Current year | 2,123,876 | 1,390,767 | 1,902,424 | ||||||||||
Prior years | (26,855 | ) | (270,749 | ) | (40,996 | ) | |||||||
Total net incurred | 2,097,021 | 1,120,018 | 1,861,428 | ||||||||||
Net paid related to: | |||||||||||||
Current year | 265,649 | 391,061 | 450,527 | ||||||||||
Prior years | 832,405 | 503,708 | 524,298 | ||||||||||
Total net paid | 1,098,054 | 894,769 | 974,825 | ||||||||||
Amounts acquired (1) | 1,858,775 | — | — | ||||||||||
Foreign exchange (2) | 31,260 | (14,977 | ) | 38,445 | |||||||||
Net reserves as of end of period | 6,593,052 | 3,704,050 | 3,493,778 | ||||||||||
Reinsurance recoverable as of end of period | 2,791,297 | 2,372,221 | 1,586,630 | ||||||||||
Gross reserves as of end of period | $ | 9,384,349 | $ | 6,076,271 | $ | 5,080,408 | |||||||
(1) | Represents the fair value of TMR's reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of TMR. |
(2) | Reflects the impact of the foreign exchange revaluation of net reserves denominated in non-U.S. dollars as at the balance sheet date. |
Incurred claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | IBNR and ACR | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 1,131,892 | $ | 1,105,041 | $ | 1,048,747 | $ | 1,033,341 | $ | 1,045,727 | $ | 1,037,725 | $ | 1,045,490 | $ | 1,043,565 | $ | 1,015,540 | $ | 1,052,931 | $ | 60,342 | ||||||||||||||||||||||||
2011 | — | 1,989,024 | 1,926,506 | 1,827,258 | 1,768,793 | 1,738,452 | 1,698,378 | 1,683,614 | 1,678,015 | 1,664,869 | 55,191 | |||||||||||||||||||||||||||||||||||
2012 | — | — | 1,138,018 | 1,021,668 | 958,139 | 927,438 | 891,981 | 894,168 | 901,049 | 907,212 | 48,297 | |||||||||||||||||||||||||||||||||||
2013 | — | — | — | 912,545 | 861,093 | 810,934 | 761,033 | 737,158 | 718,563 | 699,767 | 43,792 | |||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 1,024,813 | 997,906 | 990,050 | 966,802 | 948,264 | 953,904 | 114,985 | |||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 1,171,023 | 1,156,856 | 1,175,927 | 1,145,983 | 1,133,632 | 131,005 | |||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 1,401,451 | 1,458,767 | 1,432,001 | 1,426,575 | 251,952 | |||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 2,940,713 | 2,724,795 | 2,632,396 | 731,975 | |||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 2,198,980 | 2,338,291 | 940,346 | |||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 2,280,044 | 1,764,899 | |||||||||||||||||||||||||||||||||||
Total | $ | 15,089,621 | $ | 4,142,784 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 146,890 | $ | 334,347 | $ | 518,162 | $ | 603,060 | $ | 670,935 | $ | 746,454 | $ | 859,745 | $ | 892,480 | $ | 912,776 | $ | 928,552 | ||||||||||||||||||||||||||
2011 | — | 311,906 | 728,464 | 1,143,829 | 1,330,492 | 1,449,060 | 1,493,174 | 1,530,030 | 1,550,195 | 1,565,359 | ||||||||||||||||||||||||||||||||||||
2012 | — | — | 267,764 | 416,808 | 522,264 | 596,634 | 647,618 | 721,942 | 752,614 | 783,106 | ||||||||||||||||||||||||||||||||||||
2013 | — | — | — | 131,829 | 340,652 | 434,508 | 496,380 | 554,686 | 587,978 | 615,463 | ||||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 230,826 | 432,761 | 554,398 | 630,417 | 691,774 | 741,844 | ||||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 262,085 | 495,119 | 662,001 | 781,622 | 879,950 | ||||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 286,317 | 623,440 | 826,502 | 971,424 | ||||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 745,098 | 1,067,481 | 1,371,477 | ||||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 587,619 | 804,566 | ||||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 284,842 | ||||||||||||||||||||||||||||||||||||
Total | $ | 8,946,583 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding liabilities from accident year 2009 and prior, net of reinsurance | 270,317 | |||||||||||||||||||||||||||||||||||||||||||||
Claims and claim expenses, net of reinsurance, from the Company's former Bermuda-based insurance operations | 229 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustment for unallocated claim expenses | 51,876 | |||||||||||||||||||||||||||||||||||||||||||||
Unamortized fair value adjustments recorded in connection with acquisitions | (69,219 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK | 196,811 | |||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expenses, net of reinsurance | $ | 6,593,052 | ||||||||||||||||||||||||||||||||||||||||||||
Incurred claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | IBNR and ACR | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 720,159 | $ | 681,287 | $ | 636,962 | $ | 657,719 | $ | 691,473 | $ | 696,844 | $ | 706,258 | $ | 708,343 | $ | 681,435 | $ | 731,179 | $ | 50,422 | ||||||||||||||||||||||||
2011 | — | 1,559,069 | 1,491,770 | 1,422,659 | 1,393,110 | 1,369,567 | 1,338,187 | 1,333,982 | 1,321,137 | 1,302,141 | 24,335 | |||||||||||||||||||||||||||||||||||
2012 | — | — | 559,946 | 429,425 | 395,203 | 375,098 | 356,310 | 344,535 | 336,719 | 331,865 | 12,351 | |||||||||||||||||||||||||||||||||||
2013 | — | — | — | 317,258 | 287,694 | 265,570 | 240,945 | 228,622 | 224,748 | 222,939 | 1,092 | |||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 306,731 | 283,608 | 270,618 | 265,820 | 264,754 | 265,229 | 4,554 | |||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 368,766 | 334,572 | 317,865 | 307,088 | 301,733 | 11,672 | |||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 445,532 | 458,525 | 443,135 | 432,269 | 53,990 | |||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 1,640,129 | 1,446,566 | 1,348,260 | 295,210 | |||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 945,829 | 1,054,884 | 273,477 | |||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 1,000,190 | 719,847 | |||||||||||||||||||||||||||||||||||
Total | $ | 6,990,689 | $ | 1,446,950 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 104,859 | $ | 230,552 | $ | 345,574 | $ | 401,977 | $ | 450,624 | $ | 481,489 | $ | 581,160 | $ | 595,131 | $ | 612,013 | $ | 623,231 | ||||||||||||||||||||||||||
2011 | — | 262,987 | 590,346 | 965,668 | 1,121,374 | 1,207,136 | 1,230,503 | 1,252,204 | 1,257,516 | 1,264,414 | ||||||||||||||||||||||||||||||||||||
2012 | — | — | 165,850 | 205,567 | 253,699 | 280,195 | 291,027 | 305,627 | 308,822 | 313,976 | ||||||||||||||||||||||||||||||||||||
2013 | — | — | — | 80,083 | 155,459 | 191,181 | 206,376 | 213,351 | 216,176 | 219,231 | ||||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 106,618 | 184,140 | 222,509 | 234,144 | 241,139 | 247,663 | ||||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 126,831 | 215,134 | 249,182 | 268,545 | 279,165 | ||||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 119,908 | 258,355 | 324,296 | 350,646 | ||||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 534,097 | 660,491 | 824,443 | ||||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 432,201 | 450,125 | ||||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 159,585 | ||||||||||||||||||||||||||||||||||||
Total | $ | 4,732,479 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding liabilities from accident year 2009 and prior, net of reinsurance | 4,283 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustment for unallocated claim expenses | 19,339 | |||||||||||||||||||||||||||||||||||||||||||||
Unamortized fair value adjustments recorded in connection with acquisitions | (10,606 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK | 17,536 | |||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expenses, net of reinsurance | $ | 2,288,762 | ||||||||||||||||||||||||||||||||||||||||||||
Incurred claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | IBNR and ACR | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 411,733 | $ | 423,754 | $ | 411,785 | $ | 375,622 | $ | 354,254 | $ | 340,881 | $ | 339,232 | $ | 335,222 | $ | 334,105 | $ | 321,752 | $ | 9,920 | ||||||||||||||||||||||||
2011 | — | 429,955 | 434,736 | 404,599 | 375,683 | 368,885 | 360,191 | 349,632 | 356,878 | 362,728 | 30,856 | |||||||||||||||||||||||||||||||||||
2012 | — | — | 578,072 | 592,243 | 562,936 | 552,340 | 535,671 | 549,633 | 564,330 | 575,347 | 35,946 | |||||||||||||||||||||||||||||||||||
2013 | — | — | — | 595,287 | 573,399 | 545,364 | 520,088 | 508,536 | 493,815 | 476,828 | 42,700 | |||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 718,082 | 714,298 | 719,432 | 700,982 | 683,510 | 688,675 | 110,431 | |||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 802,257 | 822,284 | 858,062 | 838,895 | 831,899 | 119,333 | |||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 955,919 | 1,000,242 | 988,866 | 994,306 | 197,962 | |||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 1,300,584 | 1,278,229 | 1,284,136 | 436,765 | |||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 1,253,151 | 1,283,407 | 666,869 | |||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 1,279,854 | 1,045,052 | |||||||||||||||||||||||||||||||||||
Total | $ | 8,098,932 | $ | 2,695,834 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and claim expenses, net of reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
2010 | $ | 42,031 | $ | 103,795 | $ | 172,588 | $ | 201,083 | $ | 220,311 | $ | 264,965 | $ | 278,585 | $ | 297,349 | $ | 300,763 | $ | 305,321 | ||||||||||||||||||||||||||
2011 | — | 48,919 | 138,118 | 178,161 | 209,118 | 241,924 | 262,671 | 277,826 | 292,679 | 300,945 | ||||||||||||||||||||||||||||||||||||
2012 | — | — | 101,914 | 211,241 | 268,565 | 316,439 | 356,591 | 416,315 | 443,792 | 469,130 | ||||||||||||||||||||||||||||||||||||
2013 | — | — | — | 51,746 | 185,193 | 243,327 | 290,004 | 341,335 | 371,802 | 396,232 | ||||||||||||||||||||||||||||||||||||
2014 | — | — | — | — | 124,208 | 248,621 | 331,889 | 396,273 | 450,635 | 494,181 | ||||||||||||||||||||||||||||||||||||
2015 | — | — | — | — | — | 135,254 | 279,985 | 412,819 | 513,077 | 600,785 | ||||||||||||||||||||||||||||||||||||
2016 | — | — | — | — | — | — | 166,409 | 365,085 | 502,206 | 620,778 | ||||||||||||||||||||||||||||||||||||
2017 | — | — | — | — | — | — | — | 211,001 | 406,990 | 547,034 | ||||||||||||||||||||||||||||||||||||
2018 | — | — | — | — | — | — | — | — | 155,418 | 354,441 | ||||||||||||||||||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — | — | 125,257 | ||||||||||||||||||||||||||||||||||||
Total | $ | 4,214,104 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding liabilities from accident year 2009 and prior, net of reinsurance | 266,034 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustment for unallocated claim expenses | 32,537 | |||||||||||||||||||||||||||||||||||||||||||||
Unamortized fair value adjustments recorded in connection with acquisitions | (58,613 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK | 179,275 | |||||||||||||||||||||||||||||||||||||||||||||
Liability for claims and claim expenses, net of reinsurance | $ | 4,304,061 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(Favorable) adverse development | (Favorable) adverse development | (Favorable) adverse development | |||||||||||
Property | $ | (2,933 | ) | $ | (221,290 | ) | $ | (45,596 | ) | ||||
Casualty and Specialty | (23,882 | ) | (49,262 | ) | 6,183 | ||||||||
Other | (40 | ) | (197 | ) | (1,583 | ) | |||||||
Total net favorable development of prior accident years net claims and claim expenses | $ | (26,855 | ) | $ | (270,749 | ) | $ | (40,996 | ) | ||||
Year ended December 31, | 2019 | ||||
(Favorable) adverse development | |||||
Catastrophe net claims and claim expenses | |||||
Large catastrophe events | |||||
2017 Large Loss Events | $ | (101,572 | ) | ||
New Zealand Earthquake (2011) | (7,497 | ) | |||
Tohoku Earthquake and Tsunami (2011) | (5,198 | ) | |||
New Zealand Earthquake (2010) | 47,071 | ||||
2018 Large Loss Events | 81,555 | ||||
Other | (31,916 | ) | |||
Total large catastrophe events | (17,557 | ) | |||
Small catastrophe events and attritional loss movements | |||||
Other small catastrophe events and attritional loss movements | 5,379 | ||||
Total small catastrophe events and attritional loss movements | 5,379 | ||||
Total catastrophe and attritional net claims and claim expenses | (12,178 | ) | |||
Actuarial assumption changes | 9,245 | ||||
Total net favorable development of prior accident years net claims and claim expenses | $ | (2,933 | ) | ||
Year ended December 31, | 2018 | ||||
(Favorable) adverse development | |||||
Catastrophe net claims and claim expenses | |||||
Large catastrophe events | |||||
2017 Large Loss Events | $ | (172,512 | ) | ||
Other | (9,517 | ) | |||
Total large catastrophe events | (182,029 | ) | |||
Small catastrophe events and attritional loss movements | |||||
Other small catastrophe events and attritional loss movements | (33,579 | ) | |||
Total small catastrophe events and attritional loss movements | (33,579 | ) | |||
Total catastrophe and attritional net claims and claim expenses | (215,608 | ) | |||
Actuarial assumption changes | (5,682 | ) | |||
Total net favorable development of prior accident years net claims and claim expenses | $ | (221,290 | ) | ||
Year ended December 31, | 2017 | ||||
(Favorable) adverse development | |||||
Catastrophe net claims and claim expenses | |||||
Large catastrophe events | |||||
Storm Sandy (2012) | $ | (4,395 | ) | ||
April and May U.S. Tornadoes (2011) | (4,177 | ) | |||
New Zealand Earthquake (2010) | 4,061 | ||||
New Zealand Earthquake (2011) | 5,807 | ||||
Other | (8,936 | ) | |||
Total large catastrophe events | (7,640 | ) | |||
Small catastrophe events and attritional loss movements | |||||
Tianjin Explosion (2015) | (8,002 | ) | |||
Fort McMurray Wildfire (2016) | (6,364 | ) | |||
Other small catastrophe events and attritional loss movements | (24,432 | ) | |||
Total small catastrophe events and attritional loss movements | (38,798 | ) | |||
Total catastrophe and attritional net claims and claim expenses | (46,438 | ) | |||
Actuarial assumption changes | 842 | ||||
Total net favorable development of prior accident years net claims and claim expenses | $ | (45,596 | ) | ||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(Favorable) adverse development | (Favorable) adverse development | (Favorable) adverse development | |||||||||||
Actuarial methods - actual reported claims less than expected claims | $ | (52,796 | ) | $ | (41,476 | ) | $ | (24,836 | ) | ||||
Ogden Rate change | — | — | 33,481 | ||||||||||
Actuarial assumption changes | 28,914 | (7,786 | ) | (2,462 | ) | ||||||||
Total net (favorable) adverse development of prior accident years net claims and claim expenses | $ | (23,882 | ) | $ | (49,262 | ) | $ | 6,183 | |||||
At December 31, 2019 | |||||
Net reserve for claims and claim expenses | |||||
Property | $ | 2,288,762 | |||
Casualty and Specialty | 4,304,061 | ||||
Other | 229 | ||||
Total net reserve for claims and claim expenses | 6,593,052 | ||||
Reinsurance recoverable | |||||
Property | $ | 1,785,088 | |||
Casualty and Specialty | 1,005,998 | ||||
Other | 211 | ||||
Total reinsurance recoverable | 2,791,297 | ||||
Total gross reserve for claims and claim expenses | $ | 9,384,349 | |||
Average annual percentage payout of incurred claims by age, net of reinsurance (number of years) | |||||||||||||||||||||||||||||||
At December 31, 2019 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||||||||||||||||||||
Property | 29.9 | % | 17.0 | % | 17.8 | % | 8.7 | % | 5.4 | % | 2.7 | % | 4.9 | % | 1.0 | % | 1.2 | % | 1.5 | % | |||||||||||
Casualty and Specialty | 14.3 | % | 18.4 | % | 13.0 | % | 10.3 | % | 8.8 | % | 8.2 | % | 4.6 | % | 4.7 | % | 1.7 | % | 1.4 | % | |||||||||||
• | Claims below the insured layer of a contract are excluded; |
• | If an insured loss event results in claims associated with a number of layers of a contract, the Company would consider this to be a single claim; and |
• | If an insured loss event results in claims associated with a number of the Company's operating subsidiaries, the Company considers each operating subsidiary to have a reported claim. |
At December 31, 2019 | ||||||
Cumulative number of reported claims | ||||||
Accident Year | Property | Casualty and Specialty | ||||
2010 | 835 | 1,215 | ||||
2011 | 1,388 | 1,964 | ||||
2012 | 922 | 2,263 | ||||
2013 | 799 | 2,712 | ||||
2014 | 744 | 3,421 | ||||
2015 | 758 | 3,783 | ||||
2016 | 1,089 | 4,135 | ||||
2017 | 2,215 | 3,294 | ||||
2018 | 2,050 | 2,148 | ||||
2019 | 861 | 816 | ||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
3.600% Senior Notes due 2029 | $ | 424,920 | $ | 391,475 | $ | — | $ | — | |||||||||
3.450% Senior Notes due 2027 | 314,070 | 296,292 | 283,680 | 295,797 | |||||||||||||
3.700% Senior Notes due 2025 | 318,567 | 298,057 | 292,557 | 297,688 | |||||||||||||
5.750% Senior Notes due 2020 | 251,030 | 249,931 | 255,938 | 249,602 | |||||||||||||
4.750% Senior Notes due 2025 (DaVinciRe) (1) | 160,031 | 148,350 | 142,539 | 148,040 | |||||||||||||
$ | 1,468,618 | $ | 1,384,105 | $ | 974,714 | $ | 991,127 | ||||||||||
(1) | RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinciRe and RenaissanceRe’s financial exposure to DaVinciRe is limited to its investment in DaVinciRe’s shares and counterparty credit risk arising from reinsurance transactions. |
2020 | $ | 250,000 | |||
2021 | — | ||||
2022 | — | ||||
2023 | — | ||||
2024 | — | ||||
After 2024 | 1,150,000 | ||||
Unamortized discount and debt issuance expenses | (15,895 | ) | |||
$ | 1,384,105 | ||||
At December 31, 2019 | Issued or Drawn | ||||
Revolving Credit Facility (1) | $ | — | |||
Bilateral Letter of Credit Facilities | |||||
Secured | 298,063 | ||||
Unsecured | 381,770 | ||||
Funds at Lloyd’s Letter of Credit Facility | 290,000 | ||||
TMR Letters of Credit (2) | 140,923 | ||||
$ | 1,110,756 | ||||
(1) | At December 31, 2019, no amounts were issued or drawn under this facility. |
(2) | These letters of credit were transferred to us in connection with the acquisition of TMR. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of TMR. |
December 31, 2019 | December 31, 2018 | ||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | 1,435,581 | $ | 1,034,946 | |||||
Redeemable noncontrolling interest - Medici | 632,112 | 416,765 | |||||||
Redeemable noncontrolling interest - Vermeer | 1,003,615 | 599,989 | |||||||
Redeemable noncontrolling interests | $ | 3,071,308 | $ | 2,051,700 | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | 127,084 | $ | 27,638 | $ | (134,860 | ) | ||||||
Redeemable noncontrolling interest - Medici | 25,759 | 13,926 | 2,578 | ||||||||||
Redeemable noncontrolling interest - Vermeer | 48,626 | (11 | ) | — | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests | $ | 201,469 | $ | 41,553 | $ | (132,282 | ) | ||||||
Year ended December 31, | 2019 | 2018 | |||||||
Beginning balance | $ | 1,034,946 | $ | 1,011,659 | |||||
Redemption of shares from redeemable noncontrolling interests, net of adjustments | (1,148 | ) | (4,351 | ) | |||||
Sale of shares to redeemable noncontrolling interests | 274,699 | — | |||||||
Net income attributable to redeemable noncontrolling interests | 127,084 | 27,638 | |||||||
Ending balance | $ | 1,435,581 | $ | 1,034,946 | |||||
Year ended December 31, | 2019 | 2018 | |||||||
Beginning balance | $ | 416,765 | $ | 284,847 | |||||
Redemption of shares from redeemable noncontrolling interests, net of adjustments | (47,401 | ) | (90,490 | ) | |||||
Sale of shares to redeemable noncontrolling interests | 236,989 | 208,482 | |||||||
Net income attributable to redeemable noncontrolling interests | 25,759 | 13,926 | |||||||
Ending balance | $ | 632,112 | $ | 416,765 | |||||
Year ended December 31, | 2019 | 2018 | |||||||
Beginning balance | $ | 599,989 | $ | — | |||||
Sale of shares to redeemable noncontrolling interest | 355,000 | 600,000 | |||||||
Net income (loss) attributable to redeemable noncontrolling interest | 48,626 | (11 | ) | ||||||
Ending balance | $ | 1,003,615 | $ | 599,989 | |||||
Year ended December 31, | 2019 | 2018 | 2017 | |||||||
(thousands of shares) | ||||||||||
Issued and outstanding shares – January 1 | 42,207 | �� | 40,024 | 41,187 | ||||||
Issuance of shares | 1,739 | 1,947 | — | |||||||
Repurchase of shares | — | — | (1,322 | ) | ||||||
Exercise of options and issuance of restricted stock awards | 202 | 236 | 159 | |||||||
Issued and outstanding shares – December 31 | 44,148 | 42,207 | 40,024 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
(common shares in thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 712,042 | $ | 197,276 | $ | (244,770 | ) | ||||||
Amount allocated to participating common shareholders (1) | (8,545 | ) | (2,121 | ) | (457 | ) | |||||||
Net income (loss) allocated to RenaissanceRe common shareholders | $ | 703,497 | $ | 195,155 | $ | (245,227 | ) | ||||||
Denominator: | |||||||||||||
Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares | 43,119 | 39,732 | 39,854 | ||||||||||
Per common share equivalents of employee stock options and performance shares | 56 | 23 | — | ||||||||||
Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions | 43,175 | 39,755 | 39,854 | ||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic | $ | 16.32 | $ | 4.91 | $ | (6.15 | ) | ||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | $ | 16.29 | $ | 4.91 | $ | (6.15 | ) | ||||||
(1) | Represents earnings attributable to holders of unvested shares issued pursuant to the Company’s stock compensation plans and to the Company’s non-employee directors. |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Domestic | |||||||||||||
Bermuda | $ | 861,068 | $ | 349,959 | $ | (262,827 | ) | ||||||
Foreign | |||||||||||||
U.S. | 102,724 | (56,261 | ) | (11,897 | ) | ||||||||
Australia | 3,390 | — | — | ||||||||||
Switzerland | 14,255 | 166 | — | ||||||||||
Ireland | (388 | ) | 551 | 617 | |||||||||
Singapore | (6,334 | ) | (3,226 | ) | (12,421 | ) | |||||||
U.K. | (7,233 | ) | (28,574 | ) | (41,656 | ) | |||||||
Income (loss) before taxes | $ | 967,482 | $ | 262,615 | $ | (328,184 | ) | ||||||
Year ended December 31, 2019 | Current | Deferred | Total | ||||||||||
Total income tax expense | $ | (2,128 | ) | $ | (15,087 | ) | $ | (17,215 | ) | ||||
Year ended December 31, 2018 | |||||||||||||
Total income tax (expense) benefit | $ | (1,668 | ) | $ | 7,970 | $ | 6,302 | ||||||
Year ended December 31, 2017 | |||||||||||||
Total income tax expense | $ | (844 | ) | $ | (25,643 | ) | $ | (26,487 | ) | ||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Expected income tax (expense) benefit | $ | (22,874 | ) | $ | 17,697 | $ | 14,216 | ||||||
Nondeductible expenses | (7,059 | ) | (370 | ) | (276 | ) | |||||||
Change in valuation allowance | (5,481 | ) | (5,255 | ) | (11,718 | ) | |||||||
Withholding tax | (665 | ) | (1,831 | ) | (216 | ) | |||||||
Effect of change in tax rate | (262 | ) | (708 | ) | (38,083 | ) | |||||||
Non-taxable foreign exchange gains (losses) | (4 | ) | 586 | 2,574 | |||||||||
Tax exempt income | 400 | 944 | 3,794 | ||||||||||
Transfer pricing | 2,503 | (2,481 | ) | (11 | ) | ||||||||
GAAP to statutory accounting difference | 6,553 | — | — | ||||||||||
Foreign branch adjustments | 7,315 | — | — | ||||||||||
U.S. base erosion and anti-abuse tax | — | (1,271 | ) | — | |||||||||
Other | 2,359 | (1,009 | ) | 3,233 | |||||||||
Income tax (expense) benefit | $ | (17,215 | ) | $ | 6,302 | $ | (26,487 | ) | |||||
At December 31, | 2019 | 2018 | |||||||
Deferred tax assets | |||||||||
Tax loss and credit carryforwards | $ | 111,835 | $ | 60,395 | |||||
Unearned premiums | 14,430 | 10,108 | |||||||
Deferred finance charges | 10,160 | 14,646 | |||||||
Reserve for claims and claim expenses | 8,984 | 17,345 | |||||||
Accrued expenses | 7,196 | 4,292 | |||||||
Deferred underwriting results | 4,033 | 3,514 | |||||||
Premiums receivable | 3,412 | — | |||||||
Investments | — | 4,427 | |||||||
160,050 | 114,727 | ||||||||
Deferred tax liabilities | |||||||||
Deferred acquisition expenses | (16,296 | ) | (11,801 | ) | |||||
VOBA | (12,673 | ) | — | ||||||
Investments | (6,468 | ) | — | ||||||
Intangible assets | (2,891 | ) | — | ||||||
Amortization and depreciation | (2,133 | ) | (2,992 | ) | |||||
(40,461 | ) | (14,793 | ) | ||||||
Net deferred tax asset before valuation allowance | 119,589 | 99,934 | |||||||
Valuation allowance | (75,685 | ) | (35,271 | ) | |||||
Net deferred tax asset | $ | 43,904 | $ | 64,663 | |||||
Year ended December 31, 2019 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 2,430,985 | $ | 2,376,765 | $ | — | $ | 4,807,750 | |||||||||
Net premiums written | $ | 1,654,259 | $ | 1,727,234 | $ | — | $ | 3,381,493 | |||||||||
Net premiums earned | $ | 1,627,494 | $ | 1,710,909 | $ | — | $ | 3,338,403 | |||||||||
Net claims and claim expenses incurred | 965,424 | 1,131,637 | (40 | ) | 2,097,021 | ||||||||||||
Acquisition expenses | 313,761 | 448,678 | (207 | ) | 762,232 | ||||||||||||
Operational expenses | 139,015 | 84,546 | (828 | ) | 222,733 | ||||||||||||
Underwriting income (loss) | $ | 209,294 | $ | 46,048 | $ | 1,075 | 256,417 | ||||||||||
Net investment income | 423,833 | 423,833 | |||||||||||||||
Net foreign exchange losses | (2,938 | ) | (2,938 | ) | |||||||||||||
Equity in earnings of other ventures | 23,224 | 23,224 | |||||||||||||||
Other income | 4,949 | 4,949 | |||||||||||||||
Net realized and unrealized gains on investments | 414,483 | 414,483 | |||||||||||||||
Corporate expenses | (94,122 | ) | (94,122 | ) | |||||||||||||
Interest expense | (58,364 | ) | (58,364 | ) | |||||||||||||
Income before taxes and redeemable noncontrolling interests | 967,482 | ||||||||||||||||
Income tax expense | (17,215 | ) | (17,215 | ) | |||||||||||||
Net income attributable to redeemable noncontrolling interests | (201,469 | ) | (201,469 | ) | |||||||||||||
Dividends on preference shares | (36,756 | ) | (36,756 | ) | |||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 712,042 | |||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 968,357 | $ | 1,155,519 | $ | — | $ | 2,123,876 | |||||||||
Net claims and claim expenses incurred – prior accident years | (2,933 | ) | (23,882 | ) | (40 | ) | (26,855 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 965,424 | $ | 1,131,637 | $ | (40 | ) | $ | 2,097,021 | ||||||||
Net claims and claim expense ratio – current accident year | 59.5 | % | 67.5 | % | 63.6 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (0.2 | )% | (1.4 | )% | (0.8 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 59.3 | % | 66.1 | % | 62.8 | % | |||||||||||
Underwriting expense ratio | 27.8 | % | 31.2 | % | 29.5 | % | |||||||||||
Combined ratio | 87.1 | % | 97.3 | % | 92.3 | % | |||||||||||
Year ended December 31, 2018 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 1,760,926 | $ | 1,549,501 | $ | — | $ | 3,310,427 | |||||||||
Net premiums written | $ | 1,055,188 | $ | 1,076,714 | $ | — | $ | 2,131,902 | |||||||||
Net premiums earned | $ | 1,050,831 | $ | 925,298 | $ | — | $ | 1,976,129 | |||||||||
Net claims and claim expenses incurred | 497,895 | 622,320 | (197 | ) | 1,120,018 | ||||||||||||
Acquisition expenses | 177,912 | 255,079 | (2 | ) | 432,989 | ||||||||||||
Operational expenses | 112,954 | 64,883 | 430 | 178,267 | |||||||||||||
Underwriting income (loss) | $ | 262,070 | $ | (16,984 | ) | $ | (231 | ) | 244,855 | ||||||||
Net investment income | 261,866 | 261,866 | |||||||||||||||
Net foreign exchange losses | (12,428 | ) | (12,428 | ) | |||||||||||||
Equity in earnings of other ventures | 18,474 | 18,474 | |||||||||||||||
Other income | 5,969 | 5,969 | |||||||||||||||
Net realized and unrealized losses on investments | (175,069 | ) | (175,069 | ) | |||||||||||||
Corporate expenses | (33,983 | ) | (33,983 | ) | |||||||||||||
Interest expense | (47,069 | ) | (47,069 | ) | |||||||||||||
Income before taxes and redeemable noncontrolling interests | 262,615 | ||||||||||||||||
Income tax benefit | 6,302 | 6,302 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | (41,553 | ) | (41,553 | ) | |||||||||||||
Dividends on preference shares | (30,088 | ) | (30,088 | ) | |||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 197,276 | |||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 719,185 | $ | 671,582 | $ | — | $ | 1,390,767 | |||||||||
Net claims and claim expenses incurred – prior accident years | (221,290 | ) | (49,262 | ) | (197 | ) | (270,749 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 497,895 | $ | 622,320 | $ | (197 | ) | $ | 1,120,018 | ||||||||
Net claims and claim expense ratio – current accident year | 68.4 | % | 72.6 | % | 70.4 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (21.0 | )% | (5.3 | )% | (13.7 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 47.4 | % | 67.3 | % | 56.7 | % | |||||||||||
Underwriting expense ratio | 27.7 | % | 34.5 | % | 30.9 | % | |||||||||||
Combined ratio | 75.1 | % | 101.8 | % | 87.6 | % | |||||||||||
Year ended December 31, 2017 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 1,440,437 | $ | 1,357,110 | $ | (7 | ) | $ | 2,797,540 | ||||||||
Net premiums written | $ | 978,014 | $ | 893,307 | $ | 4 | $ | 1,871,325 | |||||||||
Net premiums earned | $ | 931,070 | $ | 786,501 | $ | 4 | $ | 1,717,575 | |||||||||
Net claims and claim expenses incurred | 1,297,985 | 565,026 | (1,583 | ) | 1,861,428 | ||||||||||||
Acquisition expenses | 113,816 | 233,077 | (1 | ) | 346,892 | ||||||||||||
Operational expenses | 94,194 | 66,548 | 36 | 160,778 | |||||||||||||
Underwriting (loss) income | $ | (574,925 | ) | $ | (78,150 | ) | $ | 1,552 | (651,523 | ) | |||||||
Net investment income | 222,209 | 222,209 | |||||||||||||||
Net foreign exchange gains | 10,628 | 10,628 | |||||||||||||||
Equity in earnings of other ventures | 8,030 | 8,030 | |||||||||||||||
Other income | 9,415 | 9,415 | |||||||||||||||
Net realized and unrealized gains on investments | 135,822 | 135,822 | |||||||||||||||
Corporate expenses | (18,572 | ) | (18,572 | ) | |||||||||||||
Interest expense | (44,193 | ) | (44,193 | ) | |||||||||||||
Loss before taxes and redeemable noncontrolling interests | (328,184 | ) | |||||||||||||||
Income tax expense | (26,487 | ) | (26,487 | ) | |||||||||||||
Net loss attributable to redeemable noncontrolling interests | 132,282 | 132,282 | |||||||||||||||
Dividends on preference shares | (22,381 | ) | (22,381 | ) | |||||||||||||
Net loss attributable to RenaissanceRe common shareholders | $ | (244,770 | ) | ||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 1,343,581 | $ | 558,843 | $ | — | $ | 1,902,424 | |||||||||
Net claims and claim expenses incurred – prior accident years | (45,596 | ) | 6,183 | (1,583 | ) | (40,996 | ) | ||||||||||
Net claims and claim expenses incurred – total | $ | 1,297,985 | $ | 565,026 | $ | (1,583 | ) | $ | 1,861,428 | ||||||||
Net claims and claim expense ratio – current accident year | 144.3 | % | 71.1 | % | 110.8 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (4.9 | )% | 0.7 | % | (2.4 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 139.4 | % | 71.8 | % | 108.4 | % | |||||||||||
Underwriting expense ratio | 22.3 | % | 38.1 | % | 29.5 | % | |||||||||||
Combined ratio | 161.7 | % | 109.9 | % | 137.9 | % | |||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property | |||||||||||||
U.S. and Caribbean | $ | 1,368,205 | $ | 978,063 | $ | 954,269 | |||||||
Worldwide | 643,744 | 464,311 | 305,915 | ||||||||||
Europe | 182,544 | 144,857 | 49,486 | ||||||||||
Japan | 90,328 | 71,601 | 49,821 | ||||||||||
Worldwide (excluding U.S.) (1) | 79,393 | 66,872 | 48,182 | ||||||||||
Australia and New Zealand | 32,203 | 19,273 | 14,151 | ||||||||||
Other | 34,568 | 15,949 | 18,613 | ||||||||||
Total Property | 2,430,985 | 1,760,926 | 1,440,437 | ||||||||||
Casualty and Specialty | |||||||||||||
Worldwide | 935,626 | 776,976 | 686,253 | ||||||||||
U.S. and Caribbean | 1,071,170 | 667,125 | 622,757 | ||||||||||
Worldwide (excluding U.S.) (1) | 25,291 | 31,734 | 10,104 | ||||||||||
Europe | 227,178 | 15,296 | 9,752 | ||||||||||
Australia and New Zealand | 34,053 | 3,667 | 4,141 | ||||||||||
Other | 83,447 | 54,703 | 24,103 | ||||||||||
Total Casualty and Specialty | 2,376,765 | 1,549,501 | 1,357,110 | ||||||||||
Other category | — | — | (7 | ) | |||||||||
Total gross premiums written | $ | 4,807,750 | $ | 3,310,427 | $ | 2,797,540 | |||||||
(1) | The category “Worldwide (excluding U.S.)” consists of contracts that cover more than one geographic region (other than the U.S.). |
Performance Share Awards | |||||
Year ended December 31, | 2019 | 2018 | |||
Expected volatility (1) | n/a | 15.8% | |||
Expected term (in years) | n/a | n/a | |||
Expected dividend yield | n/a | n/a | |||
Risk-free interest rate (1) | n/a | 1.85% - 2.36% | |||
(1) | The expected volatility and risk-free interest rate applied are specific to each tranche of performance share awards. |
Weighted options outstanding | Weighted average exercise price | Weighted average remaining contractual life | Aggregate intrinsic value | Range of exercise prices | ||||||||||||||
Balance, December 31, 2016 | 206,795 | $ | 53.17 | 0.9 | $ | 17,174 | $50.71 - $59.66 | |||||||||||
Options granted | — | — | — | |||||||||||||||
Options forfeited | — | — | ||||||||||||||||
Options expired | — | — | ||||||||||||||||
Options exercised | (174,794 | ) | 53.04 | $ | 15,945 | $50.71 - $59.66 | ||||||||||||
Balance, December 31, 2017 | 32,001 | $ | 53.86 | 0.2 | $ | 2,295 | $ | 53.86 | ||||||||||
Options granted | — | — | — | |||||||||||||||
Options forfeited | — | — | ||||||||||||||||
Options expired | — | — | ||||||||||||||||
Options exercised | (32,001 | ) | 53.86 | $ | 2,320 | $ | 53.86 | |||||||||||
Balance, December 31, 2018 | — | $ | — | 0.0 | $ | — | $ | — | ||||||||||
Number of shares | ||||
Nonvested at December 31, 2016 | 308,344 | |||
Awards granted | 98,067 | |||
Awards vested | (122,088 | ) | ||
Awards forfeited | (21,993 | ) | ||
Nonvested at December 31, 2017 | 262,330 | |||
Awards granted | — | |||
Awards vested | (108,344 | ) | ||
Awards forfeited | (7,069 | ) | ||
Nonvested at December 31, 2018 | 146,917 | |||
Awards granted | — | |||
Awards vested | (80,012 | ) | ||
Awards forfeited | (3,161 | ) | ||
Nonvested at December 31, 2019 | 63,744 | |||
Number of shares (1) | Weighted average grant-date fair value | |||||||
Nonvested at December 31, 2016 | 211,381 | $ | 44.63 | |||||
Awards granted | 64,947 | $ | 65.27 | |||||
Awards vested | (62,499 | ) | $ | 43.51 | ||||
Awards forfeited | (46,156 | ) | ||||||
Nonvested at December 31, 2017 | 167,673 | $ | 53.11 | |||||
Awards granted | 83,475 | $ | 60.69 | |||||
Awards vested | (16,456 | ) | $ | 53.79 | ||||
Awards forfeited | (82,241 | ) | ||||||
Nonvested at December 31, 2018 | 152,451 | $ | 57.21 | |||||
Awards granted | 58,050 | $ | 146.10 | |||||
Awards vested | (21,730 | ) | $ | 49.90 | ||||
Awards forfeited | (43,924 | ) | ||||||
Nonvested at December 31, 2019 | 144,847 | $ | 94.70 | |||||
(1) | For performance share awards, the number of shares is stated at the maximum number that can be attained if the performance conditions are fully met. Forfeitures represent shares forfeited due to vesting below the maximum attainable as a result of the Company not fully meeting the performance conditions. |
Employee restricted stock awards | Non-employee director restricted stock awards | Total restricted stock awards | ||||||||||||||||||||
Number of shares | Weighted average grant date fair value | Number of shares | Weighted average grant date fair value | Number of shares | Weighted average grant date fair value | |||||||||||||||||
Nonvested at December 31, 2016 | 402,170 | $ | 103.34 | 25,545 | $ | 107.95 | 427,715 | $ | 103.61 | |||||||||||||
Awards granted | 116,345 | 148.66 | 12,193 | 150.05 | 128,538 | 148.79 | ||||||||||||||||
Awards vested | (185,478 | ) | 100.17 | (17,612 | ) | 110.66 | (203,090 | ) | 101.08 | |||||||||||||
Awards forfeited | — | — | — | — | — | — | ||||||||||||||||
Nonvested at December 31, 2017 | 333,037 | $ | 120.93 | 20,126 | $ | 131.09 | 353,163 | $ | 121.51 | |||||||||||||
Awards granted | 255,799 | 132.70 | 12,169 | 127.29 | 267,968 | 132.79 | ||||||||||||||||
Awards vested | (139,454 | ) | 112.70 | (9,761 | ) | 123.59 | (149,215 | ) | 113.41 | |||||||||||||
Awards forfeited | (1,642 | ) | 134.38 | — | — | (1,642 | ) | 134.38 | ||||||||||||||
Nonvested at December 31, 2018 | 447,740 | $ | 130.37 | 22,534 | $ | 132.29 | 470,274 | $ | 130.46 | |||||||||||||
Awards granted | 242,832 | 146.92 | 11,444 | 147.43 | 254,276 | 146.94 | ||||||||||||||||
Awards vested | (165,245 | ) | 124.71 | (12,972 | ) | 131.88 | (178,217 | ) | 125.23 | |||||||||||||
Awards forfeited | (14,467 | ) | 136.16 | — | — | (14,467 | ) | 136.16 | ||||||||||||||
Nonvested at December 31, 2019 | 510,860 | $ | 139.91 | 21,006 | $ | 140.79 | 531,866 | $ | 139.94 | |||||||||||||
Bermuda (1) | Switzerland (2) | U.K. (3) (4) | U.S. | ||||||||||||||||||||||||||||||
At December 31, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Statutory capital and surplus | $ | 5,325,749 | $ | 4,366,089 | $ | 580,235 | $ | — | $ | 675,864 | $ | 519,689 | $ | 677,832 | $ | 502,803 | |||||||||||||||||
Required statutory capital and surplus | 1,201,529 | 957,650 | 465,900 | — | 675,864 | 519,689 | 397,447 | 306,628 | |||||||||||||||||||||||||
Unrestricted net assets | 1,107,586 | 931,387 | 102,943 | — | — | — | 46,630 | 31,228 | |||||||||||||||||||||||||
(1) | The Company's Bermuda-domiciled insurance subsidiaries’ capital and surplus is based on the relevant insurer’s statutory financial statements and required statutory capital and surplus is based on the MSM. |
(2) | RenaissanceRe Europe’s statutory capital and surplus and required statutory capital and surplus incorporate a full year of statutory net loss and risk capital, respectively. |
(3) | With respect to statutory capital and surplus and required statutory capital and surplus, and as described below, underwriting capacity of a member of Lloyd’s must be supported by providing a deposit in the form of cash, securities or letters of credit, which are referred to as Funds at Lloyd’s (“FAL”). FAL is determined by Lloyd’s and is based on Syndicate 1458’s solvency and capital requirements as calculated through its internal model. |
(4) | Syndicate 1458 is capitalized by its FAL, with the related assets not held on its balance sheet. As such, unrestricted net assets is not applicable to Syndicate 1458; however, the Company can make an application to obtain approval from Lloyd’s to have funds released to RenaissanceRe from Syndicate 1458, subject to passing a Lloyd’s release test. |
Statutory Net Income (Loss) | |||||||||||||||||
Bermuda | Switzerland | U.K. | U.S. | ||||||||||||||
Year ended December 31, 2019 | $ | 657,182 | $ | (14,679 | ) | $ | (666,595 | ) | $ | 37,827 | |||||||
Year ended December 31, 2018 | 326,386 | — | (6,692 | ) | 25,851 | ||||||||||||
Year ended December 31, 2017 | (334,142 | ) | — | (57,050 | ) | (3,627 | ) | ||||||||||
• | 10% of the insurer's statutory policyholders' surplus (as determined under statutory accounting principles) as of December 31 of the prior year; or |
• | the insurer's net investment income excluding realized capital gains (as determined under statutory accounting principles) for the twelve-month period ending on December 31 of the prior year and pro rata distributions of any class of the insurer's securities, plus any amounts of net investment income (subject to the foregoing exclusions) in the three calendar years prior to the preceding year which have not been paid out as dividends. |
Derivative Assets | |||||||||||||||||||||||
At December 31, 2019 | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | Balance Sheet Location | Collateral | Net Amount | |||||||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||||||||||
Interest rate futures | $ | 234 | $ | 122 | $ | 112 | Other assets | $ | — | $ | 112 | ||||||||||||
Foreign currency forward contracts (1) | 22,702 | 2,418 | 20,284 | Other assets | — | 20,284 | |||||||||||||||||
Foreign currency forward contracts (2) | 1,082 | 622 | 460 | Other assets | — | 460 | |||||||||||||||||
Credit default swaps | 37 | — | 37 | Other assets | — | 37 | |||||||||||||||||
Total return swaps | 3,744 | — | 3,744 | Other assets | 3,601 | 143 | |||||||||||||||||
Equity futures | 291 | — | 291 | Other assets | — | 291 | |||||||||||||||||
Total derivative instruments not designated as hedges | 28,090 | 3,162 | 24,928 | 3,601 | 21,327 | ||||||||||||||||||
Derivative instruments designated as hedges | |||||||||||||||||||||||
Foreign currency forward contracts (3) | 64 | 667 | (603 | ) | Other assets | — | (603 | ) | |||||||||||||||
Total derivative instruments designated as hedges | 64 | 667 | (603 | ) | — | (603 | ) | ||||||||||||||||
Total | $ | 28,154 | $ | 3,829 | $ | 24,325 | $ | 3,601 | $ | 20,724 | |||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
At December 31, 2019 | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities Presented in the Balance Sheet | Balance Sheet Location | Collateral Pledged | Net Amount | |||||||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||||||||||
Interest rate futures | $ | 1,545 | $ | 122 | $ | 1,423 | Other liabilities | $ | 1,423 | $ | — | ||||||||||||
Interest rate swaps | 50 | — | 50 | Other liabilities | 50 | — | |||||||||||||||||
Foreign currency forward contracts (1) | 3,808 | 28 | 3,780 | Other liabilities | — | 3,780 | |||||||||||||||||
Foreign currency forward contracts (2) | 939 | 622 | 317 | Other liabilities | — | 317 | |||||||||||||||||
Total derivative instruments not designated as hedges | 6,342 | 772 | 5,570 | 1,473 | 4,097 | ||||||||||||||||||
Derivative instruments designated as hedges | |||||||||||||||||||||||
Foreign currency forward contracts (3) | 1,818 | — | 1,818 | Other liabilities | — | 1,818 | |||||||||||||||||
Total | $ | 8,160 | $ | 772 | $ | 7,388 | $ | 1,473 | $ | 5,915 | |||||||||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
(3) | Contracts designated as hedges of a net investment in a foreign operation. |
Derivative Assets | |||||||||||||||||||||||
At December 31, 2018 | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | Balance Sheet Location | Collateral | Net Amount | |||||||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||||||||||
Interest rate futures | $ | 971 | $ | 636 | $ | 335 | Other assets | $ | — | $ | 335 | ||||||||||||
Interest rate swaps | 860 | — | 860 | Other assets | — | 860 | |||||||||||||||||
Foreign currency forward contracts (1) | 16,459 | 2,260 | 14,199 | Other assets | — | 14,199 | |||||||||||||||||
Foreign currency forward contracts (2) | 3,194 | 71 | 3,123 | Other assets | — | 3,123 | |||||||||||||||||
Equity futures | 1,390 | 977 | 413 | Other assets | — | 413 | |||||||||||||||||
Total | $ | 22,874 | $ | 3,944 | $ | 18,930 | $ | — | $ | 18,930 | |||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
At December 31, 2018 | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities Presented in the Balance Sheet | Balance Sheet Location | Collateral Pledged | Net Amount | |||||||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||||||||||
Interest rate futures | $ | 910 | $ | 636 | $ | 273 | Other liabilities | $ | 273 | $ | — | ||||||||||||
Interest rate swaps | 506 | — | 506 | Other liabilities | 254 | 252 | |||||||||||||||||
Foreign currency forward contracts (1) | 4,154 | — | 4,154 | Other liabilities | — | 4,154 | |||||||||||||||||
Foreign currency forward contracts (2) | 72 | 71 | 1 | Other liabilities | — | 1 | |||||||||||||||||
Credit default swaps | 1,606 | — | 1,606 | Other liabilities | 1,605 | 1 | |||||||||||||||||
Equity futures | 977 | 977 | — | Other liabilities | — | — | |||||||||||||||||
Total | $ | 8,225 | $ | 1,684 | $ | 6,540 | $ | 2,132 | $ | 4,408 | |||||||||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
Location of gain (loss) recognized on derivatives | Amount of gain (loss) recognized on derivatives | |||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | |||||||||||
Derivative instruments not designated as hedges | ||||||||||||||
Interest rate futures | Net realized and unrealized gains (losses) on investments | $ | 16,848 | $ | 6,109 | $ | (3,252 | ) | ||||||
Interest rate swaps | Net realized and unrealized gains (losses) on investments | 1,488 | (84 | ) | 436 | |||||||||
Foreign currency forward contracts (1) | Net foreign exchange losses | 12,617 | 3,840 | 9,628 | ||||||||||
Foreign currency forward contracts (2) | Net foreign exchange losses | (1,605 | ) | 5,736 | (916 | ) | ||||||||
Credit default swaps | Net realized and unrealized gains (losses) on investments | 7,043 | (3,106 | ) | 326 | |||||||||
Total return swaps | Net realized and unrealized gains (losses) on investments | 12,155 | — | — | ||||||||||
Equity futures | Net realized and unrealized gains (losses) on investments | 21,357 | (515 | ) | — | |||||||||
Total derivative instruments not designated as hedges | 69,903 | 11,980 | 6,222 | |||||||||||
Derivative instruments designated as hedges | ||||||||||||||
Foreign currency forward contracts (3) | Accumulated other comprehensive income (loss) | 959 | — | — | ||||||||||
Total | $ | 70,862 | $ | 11,980 | $ | 6,222 | ||||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
(3) | Contracts designated as hedges of a net investment in a foreign operation. |
Year ended December 31, | 2019 | 2018 | |||||||
Weighted average of U.S. dollar equivalent of foreign denominated net assets | $ | 81,264 | $ | — | |||||
Derivative gains (1) | $ | 959 | $ | — | |||||
(1) | Derivative gains from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity. |
Future minimum lease payments | |||||||||
Operating leases | Finance leases | ||||||||
2020 | $ | 7,912 | $ | 3,336 | |||||
2021 | 7,684 | 3,336 | |||||||
2022 | 6,967 | 3,336 | |||||||
2023 | 3,959 | 2,830 | |||||||
2024 | 2,850 | 2,661 | |||||||
After 2024 | 11,285 | 10,129 | |||||||
Future minimum lease payments under existing leases | $ | 40,657 | $ | 25,628 | |||||
Quarter Ended March 31, | Quarter Ended June 30, | Quarter Ended September 30, | Quarter Ended December 31, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Gross premiums written | $ | 1,564,295 | $ | 1,159,652 | $ | 1,476,908 | $ | 977,343 | $ | 861,068 | $ | 625,677 | $ | 905,479 | $ | 547,755 | |||||||||||||||||
Net premiums written | $ | 929,031 | $ | 663,044 | $ | 1,022,965 | $ | 604,509 | $ | 704,130 | $ | 453,255 | $ | 725,367 | $ | 411,094 | |||||||||||||||||
(Increase) decrease in unearned premiums | (379,003 | ) | (222,762 | ) | (111,463 | ) | (175,124 | ) | 202,618 | 78,594 | 244,758 | 163,519 | |||||||||||||||||||||
Net premiums earned | 550,028 | 440,282 | 911,502 | 429,385 | 906,748 | 531,849 | 970,125 | 574,613 | |||||||||||||||||||||||||
Net investment income | 81,462 | 56,476 | 115,832 | 71,356 | 113,844 | 80,696 | 112,695 | 53,338 | |||||||||||||||||||||||||
Net foreign exchange (losses) gains | (2,846 | ) | 3,757 | 9,309 | (10,687 | ) | (8,275 | ) | (4,566 | ) | (1,126 | ) | (932 | ) | |||||||||||||||||||
Equity in earnings of other ventures | 4,661 | 857 | 6,812 | 5,826 | 5,877 | 7,648 | 5,874 | 4,143 | |||||||||||||||||||||||||
Other income (loss) | 3,171 | (1,242 | ) | 922 | 1,225 | 1,016 | 497 | (160 | ) | 5,489 | |||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 170,645 | (82,144 | ) | 194,003 | (17,901 | ) | 31,938 | 13,630 | 17,897 | (88,654 | ) | ||||||||||||||||||||||
Total revenues | 807,121 | 417,986 | 1,238,380 | 479,204 | 1,051,148 | 629,754 | 1,105,305 | 547,997 | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Net claims and claim expenses incurred | 227,035 | 171,703 | 453,373 | 60,167 | 654,520 | 410,510 | 762,093 | 477,638 | |||||||||||||||||||||||||
Acquisition costs | 123,951 | 97,711 | 227,482 | 105,052 | 202,181 | 109,761 | 208,618 | 120,465 | |||||||||||||||||||||||||
Operational expenses | 44,933 | 41,272 | 59,814 | 37,543 | 53,415 | 40,593 | 64,571 | 58,859 | |||||||||||||||||||||||||
Corporate expenses | 38,789 | 6,733 | 23,847 | 8,301 | 13,844 | 6,841 | 17,642 | 12,108 | |||||||||||||||||||||||||
Interest expense | 11,754 | 11,767 | 15,534 | 11,768 | 15,580 | 11,769 | 15,496 | 11,765 | |||||||||||||||||||||||||
Total expenses | 446,462 | 329,186 | 780,050 | 222,831 | 939,540 | 579,474 | 1,068,420 | 680,835 | |||||||||||||||||||||||||
Income (loss) before taxes | 360,659 | 88,800 | 458,330 | 256,373 | 111,608 | 50,280 | 36,885 | (132,838 | ) | ||||||||||||||||||||||||
Income tax (expense) benefit | (7,531 | ) | 3,407 | (9,475 | ) | (4,506 | ) | (3,664 | ) | (1,451 | ) | 3,455 | 8,852 | ||||||||||||||||||||
Net income (loss) | 353,128 | 92,207 | 448,855 | 251,867 | 107,944 | 48,829 | 40,340 | (123,986 | ) | ||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests | (70,222 | ) | (29,899 | ) | (71,812 | ) | (54,483 | ) | (62,057 | ) | (6,440 | ) | 2,622 | 49,269 | |||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe | 282,906 | 62,308 | 377,043 | 197,384 | 45,887 | 42,389 | 42,962 | (74,717 | ) | ||||||||||||||||||||||||
Dividends on preference shares | (9,189 | ) | (5,595 | ) | (9,189 | ) | (5,596 | ) | (9,189 | ) | (9,708 | ) | (9,189 | ) | (9,189 | ) | |||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 273,717 | $ | 56,713 | $ | 367,854 | $ | 191,788 | $ | 36,698 | $ | 32,681 | $ | 33,773 | $ | (83,906 | ) | ||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic | $ | 6.43 | $ | 1.42 | $ | 8.36 | $ | 4.78 | $ | 0.83 | $ | 0.82 | $ | 0.77 | $ | (2.10 | ) | ||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | $ | 6.43 | $ | 1.42 | $ | 8.35 | $ | 4.78 | $ | 0.83 | $ | 0.82 | $ | 0.77 | $ | (2.10 | ) | ||||||||||||||||
Average shares outstanding – basic | 42,065 | 39,552 | 43,483 | 39,641 | 43,462 | 39,624 | 43,467 | 40,111 | |||||||||||||||||||||||||
Average shares outstanding – diluted | 42,091 | 39,599 | 43,521 | 39,654 | 43,537 | 39,637 | 43,552 | 40,111 | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet at December 31, 2019 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 190,451 | $ | 123,792 | $ | 288,137 | $ | 16,766,409 | $ | — | $ | 17,368,789 | |||||||||||
Cash and cash equivalents | 26,460 | 9,440 | 8,731 | 1,334,437 | — | 1,379,068 | |||||||||||||||||
Investments in subsidiaries | 5,204,260 | 48,247 | 1,426,838 | — | (6,679,345 | ) | — | ||||||||||||||||
Due from subsidiaries and affiliates | 10,725 | 101,579 | — | — | (112,304 | ) | — | ||||||||||||||||
Premiums receivable | — | — | — | 2,599,896 | — | 2,599,896 | |||||||||||||||||
Prepaid reinsurance premiums | — | — | — | 767,781 | — | 767,781 | |||||||||||||||||
Reinsurance recoverable | — | — | — | 2,791,297 | — | 2,791,297 | |||||||||||||||||
Accrued investment income | — | 270 | 1,171 | 71,020 | — | 72,461 | |||||||||||||||||
Deferred acquisition costs and value of business acquired | — | — | — | 663,991 | — | 663,991 | |||||||||||||||||
Receivable for investments sold | 173 | — | — | 78,196 | — | 78,369 | |||||||||||||||||
Other assets | 847,406 | 10,978 | 12,211 | 301,578 | (825,957 | ) | 346,216 | ||||||||||||||||
Goodwill and other intangible assets | 116,212 | — | — | 146,014 | — | 262,226 | |||||||||||||||||
Total assets | $ | 6,395,687 | $ | 294,306 | $ | 1,737,088 | $ | 25,520,619 | $ | (7,617,606 | ) | $ | 26,330,094 | ||||||||||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for claims and claim expenses | $ | — | $ | — | $ | — | $ | 9,384,349 | $ | — | $ | 9,384,349 | |||||||||||
Unearned premiums | — | — | — | 2,530,975 | — | 2,530,975 | |||||||||||||||||
Debt | 391,475 | — | 970,255 | 148,349 | (125,974 | ) | 1,384,105 | ||||||||||||||||
Amounts due to subsidiaries and affiliates | 6,708 | 51 | 102,493 | — | (109,252 | ) | — | ||||||||||||||||
Reinsurance balances payable | — | — | — | 2,830,691 | — | 2,830,691 | |||||||||||||||||
Payable for investments purchased | — | — | — | 225,275 | — | 225,275 | |||||||||||||||||
Other liabilities | 26,137 | 278 | 14,162 | 899,682 | (8,235 | ) | 932,024 | ||||||||||||||||
Total liabilities | 424,320 | 329 | 1,086,910 | 16,019,321 | (243,461 | ) | 17,287,419 | ||||||||||||||||
Redeemable noncontrolling interests | — | — | — | 3,071,308 | — | 3,071,308 | |||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity | 5,971,367 | 293,977 | 650,178 | 6,429,990 | (7,374,145 | ) | 5,971,367 | ||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 6,395,687 | $ | 294,306 | $ | 1,737,088 | $ | 25,520,619 | $ | (7,617,606 | ) | $ | 26,330,094 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Balance Sheet at December 31, 2018 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 313,360 | $ | 77,842 | $ | 28,885 | $ | 11,465,660 | $ | — | $ | 11,885,747 | |||||||||||
Cash and cash equivalents | 3,534 | 3,350 | 9,604 | 1,091,434 | — | 1,107,922 | |||||||||||||||||
Investments in subsidiaries | 4,414,475 | 58,458 | 1,215,663 | — | (5,688,596 | ) | — | ||||||||||||||||
Due from subsidiaries and affiliates | 57,039 | 101,579 | — | — | (158,618 | ) | — | ||||||||||||||||
Premiums receivable | — | — | — | 1,537,188 | — | 1,537,188 | |||||||||||||||||
Prepaid reinsurance premiums | — | — | — | 616,185 | — | 616,185 | |||||||||||||||||
Reinsurance recoverable | — | — | — | 2,372,221 | — | 2,372,221 | |||||||||||||||||
Accrued investment income | 1,046 | 310 | 127 | 49,828 | — | 51,311 | |||||||||||||||||
Deferred acquisition costs | — | — | — | 476,661 | — | 476,661 | |||||||||||||||||
Receivable for investments sold | 203 | 23,885 | — | 232,328 | — | 256,416 | |||||||||||||||||
Other assets | 458,842 | 22,571 | 313,636 | (1,403,636 | ) | 743,714 | 135,127 | ||||||||||||||||
Goodwill and other intangible assets | 120,476 | — | — | 116,942 | — | 237,418 | |||||||||||||||||
Total assets | $ | 5,368,975 | $ | 287,995 | $ | 1,567,915 | $ | 16,554,811 | $ | (5,103,500 | ) | $ | 18,676,196 | ||||||||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for claims and claim expenses | $ | — | $ | — | $ | — | $ | 6,076,271 | $ | — | $ | 6,076,271 | |||||||||||
Unearned premiums | — | — | — | 1,716,021 | — | 1,716,021 | |||||||||||||||||
Debt | 300,000 | — | 843,086 | 148,041 | (300,000 | ) | 991,127 | ||||||||||||||||
Amounts due to subsidiaries and affiliates | 6,453 | 217 | 102,243 | — | (108,913 | ) | — | ||||||||||||||||
Reinsurance balances payable | — | — | — | 1,902,056 | — | 1,902,056 | |||||||||||||||||
Payable for investments purchased | — | 24 | — | 380,308 | — | 380,332 | |||||||||||||||||
Other liabilities | 17,442 | 5,362 | 13,918 | 482,422 | (5,535 | ) | 513,609 | ||||||||||||||||
Total liabilities | 323,895 | 5,603 | 959,247 | 10,705,119 | (414,448 | ) | 11,579,416 | ||||||||||||||||
Redeemable noncontrolling interests | — | — | — | 2,051,700 | — | 2,051,700 | |||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity | 5,045,080 | 282,392 | 608,668 | 3,797,992 | (4,689,052 | ) | 5,045,080 | ||||||||||||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 5,368,975 | $ | 287,995 | $ | 1,567,915 | $ | 16,554,811 | $ | (5,103,500 | ) | $ | 18,676,196 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the year ended December 31, 2019 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | 3,338,403 | $ | — | $ | 3,338,403 | |||||||||||
Net investment income | 39,629 | 2,318 | 7,547 | 419,502 | (45,163 | ) | 423,833 | ||||||||||||||||
Net foreign exchange gains (losses) | 7,342 | — | — | (10,280 | ) | — | (2,938 | ) | |||||||||||||||
Equity in earnings of other ventures | — | — | 3,886 | 19,338 | — | 23,224 | |||||||||||||||||
Other income | — | — | — | 4,949 | — | 4,949 | |||||||||||||||||
Net realized and unrealized gains on investments | 12,393 | 21,557 | 151 | 380,382 | — | 414,483 | |||||||||||||||||
Total revenues | 59,364 | 23,875 | 11,584 | 4,152,294 | (45,163 | ) | 4,201,954 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | 2,097,021 | — | 2,097,021 | |||||||||||||||||
Acquisition expenses | — | — | — | 762,232 | — | 762,232 | |||||||||||||||||
Operational expenses | 7,506 | 56 | 38,487 | 207,981 | (31,297 | ) | 222,733 | ||||||||||||||||
Corporate expenses | 58,393 | — | 16 | 43,413 | (7,700 | ) | 94,122 | ||||||||||||||||
Interest expense | 18,086 | — | 37,993 | 2,285 | — | 58,364 | |||||||||||||||||
Total expenses | 83,985 | 56 | 76,496 | 3,112,932 | (38,997 | ) | 3,234,472 | ||||||||||||||||
(Loss) income before equity in net income of subsidiaries and taxes | (24,621 | ) | 23,819 | (64,912 | ) | 1,039,362 | (6,166 | ) | 967,482 | ||||||||||||||
Equity in net income of subsidiaries | 773,419 | 5,611 | 99,148 | — | (878,178 | ) | — | ||||||||||||||||
Income before taxes | 748,798 | 29,430 | 34,236 | 1,039,362 | (884,344 | ) | 967,482 | ||||||||||||||||
Income tax (expense) benefit | — | (4,872 | ) | 6,510 | (18,853 | ) | — | (17,215 | ) | ||||||||||||||
Net income | 748,798 | 24,558 | 40,746 | 1,020,509 | (884,344 | ) | 950,267 | ||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | (201,469 | ) | — | (201,469 | ) | |||||||||||||||
Net income attributable to RenaissanceRe | 748,798 | 24,558 | 40,746 | 819,040 | (884,344 | ) | 748,798 | ||||||||||||||||
Dividends on preference shares | (36,756 | ) | — | — | — | — | (36,756 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 712,042 | $ | 24,558 | $ | 40,746 | $ | 819,040 | $ | (884,344 | ) | $ | 712,042 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income for the year ended December 31, 2019 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | $ | 748,798 | $ | 24,558 | $ | 40,746 | $ | 1,020,509 | $ | (884,344 | ) | $ | 950,267 | ||||||||||
Change in net unrealized gains on investments, net of tax | 2,173 | 528 | 764 | — | (1,292 | ) | 2,173 | ||||||||||||||||
Foreign currency translation adjustments, net of tax | (2,679 | ) | — | — | — | — | (2,679 | ) | |||||||||||||||
Comprehensive income | 748,292 | 25,086 | 41,510 | 1,020,509 | (885,636 | ) | 949,761 | ||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | (201,469 | ) | — | (201,469 | ) | |||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | (201,469 | ) | — | (201,469 | ) | |||||||||||||||
Comprehensive income available to RenaissanceRe | $ | 748,292 | $ | 25,086 | $ | 41,510 | $ | 819,040 | $ | (885,636 | ) | $ | 748,292 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the year ended December 31, 2018 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | 1,976,129 | $ | — | $ | 1,976,129 | |||||||||||
Net investment income | 24,791 | 2,193 | 6,219 | 261,192 | (32,529 | ) | 261,866 | ||||||||||||||||
Net foreign exchange losses | (3 | ) | — | — | (12,425 | ) | — | (12,428 | ) | ||||||||||||||
Equity in earnings of other ventures | — | — | 3,065 | 15,409 | — | 18,474 | |||||||||||||||||
Other income | — | — | — | 5,969 | — | 5,969 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 633 | (4,360 | ) | (329 | ) | (171,013 | ) | — | (175,069 | ) | |||||||||||||
Total revenues | 25,421 | (2,167 | ) | 8,955 | 2,075,261 | (32,529 | ) | 2,074,941 | |||||||||||||||
Expenses | |||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | 1,120,018 | — | 1,120,018 | |||||||||||||||||
Acquisition expenses | — | — | — | 432,989 | — | 432,989 | |||||||||||||||||
Operational expenses | 7,679 | 110 | 34,534 | 164,605 | (28,661 | ) | 178,267 | ||||||||||||||||
Corporate expenses | 25,190 | — | 7 | 3,103 | 5,683 | 33,983 | |||||||||||||||||
Interest expense | 5,683 | — | 37,019 | 4,367 | — | 47,069 | |||||||||||||||||
Total expenses | 38,552 | 110 | 71,560 | 1,725,082 | (22,978 | ) | 1,812,326 | ||||||||||||||||
(Loss) income before equity in net income (loss) of subsidiaries and taxes | (13,131 | ) | (2,277 | ) | (62,605 | ) | 350,179 | (9,551 | ) | 262,615 | |||||||||||||
Equity in net income (loss) of subsidiaries | 240,495 | 5,631 | 9,091 | — | (255,217 | ) | — | ||||||||||||||||
Income (loss) before taxes | 227,364 | 3,354 | (53,514 | ) | 350,179 | (264,768 | ) | 262,615 | |||||||||||||||
Income tax benefit (expense) | — | 582 | 6,119 | (399 | ) | — | 6,302 | ||||||||||||||||
Net income (loss) | 227,364 | 3,936 | (47,395 | ) | 349,780 | (264,768 | ) | 268,917 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | (41,553 | ) | — | (41,553 | ) | |||||||||||||||
Net income (loss) attributable to RenaissanceRe | 227,364 | 3,936 | (47,395 | ) | 308,227 | (264,768 | ) | 227,364 | |||||||||||||||
Dividends on preference shares | (30,088 | ) | — | — | — | — | (30,088 | ) | |||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 197,276 | $ | 3,936 | $ | (47,395 | ) | $ | 308,227 | $ | (264,768 | ) | $ | 197,276 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income (Loss) for the year ended December 31, 2018 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | |||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||
Net income (loss) | $ | 227,364 | $ | 3,936 | $ | (47,395 | ) | $ | 349,780 | $ | (264,768 | ) | $ | 268,917 | |||||||||
Change in net unrealized gains on investments, net of tax | (1,657 | ) | (160 | ) | (162 | ) | — | 322 | (1,657 | ) | |||||||||||||
Comprehensive income (loss) | 225,707 | 3,776 | (47,557 | ) | 349,780 | (264,446 | ) | 267,260 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | (41,553 | ) | — | (41,553 | ) | |||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | (41,553 | ) | — | (41,553 | ) | |||||||||||||||
Comprehensive income (loss) available (attributable) to RenaissanceRe | $ | 225,707 | $ | 3,776 | $ | (47,557 | ) | $ | 308,227 | $ | (264,446 | ) | $ | 225,707 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the year ended December 31, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | — | $ | 1,717,575 | $ | — | $ | 1,717,575 | |||||||||||||
Net investment income | 23,109 | 1,947 | 1,373 | 3,090 | 219,490 | (26,800 | ) | 222,209 | |||||||||||||||||||
Net foreign exchange (losses) gains | (1 | ) | — | — | — | 10,629 | — | 10,628 | |||||||||||||||||||
Equity in (losses) earnings of other ventures | — | — | — | (223 | ) | 8,253 | — | 8,030 | |||||||||||||||||||
Other income | — | — | — | — | 9,415 | — | 9,415 | ||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (1,357 | ) | 9,621 | 4,916 | (479 | ) | 123,121 | — | 135,822 | ||||||||||||||||||
Total revenues | 21,751 | 11,568 | 6,289 | 2,388 | 2,088,483 | (26,800 | ) | 2,103,679 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | — | 1,861,428 | — | 1,861,428 | ||||||||||||||||||||
Acquisition expenses | — | — | — | — | 346,892 | — | 346,892 | ||||||||||||||||||||
Operational expenses | 11,314 | 103 | 85 | 26,063 | 141,572 | (18,359 | ) | 160,778 | |||||||||||||||||||
Corporate expenses | 18,546 | — | — | — | 26 | — | 18,572 | ||||||||||||||||||||
Interest expense | 1,572 | — | 2,461 | 31,657 | 10,075 | (1,572 | ) | 44,193 | |||||||||||||||||||
Total expenses | 31,432 | 103 | 2,546 | 57,720 | 2,359,993 | (19,931 | ) | 2,431,863 | |||||||||||||||||||
(Loss) income before equity in net (loss) income of subsidiaries and taxes | (9,681 | ) | 11,465 | 3,743 | (55,332 | ) | (271,510 | ) | (6,869 | ) | (328,184 | ) | |||||||||||||||
Equity in net (loss) income of subsidiaries | (212,708 | ) | 756 | 28,028 | 9,298 | — | 174,626 | — | |||||||||||||||||||
(Loss) income before taxes | (222,389 | ) | 12,221 | 31,771 | (46,034 | ) | (271,510 | ) | 167,757 | (328,184 | ) | ||||||||||||||||
Income tax (expense) benefit | — | (18,147 | ) | (1,175 | ) | 7,163 | (14,328 | ) | — | (26,487 | ) | ||||||||||||||||
Net (loss) income | (222,389 | ) | (5,926 | ) | 30,596 | (38,871 | ) | (285,838 | ) | 167,757 | (354,671 | ) | |||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 132,282 | — | 132,282 | ||||||||||||||||||||
Net (loss) income attributable to RenaissanceRe | (222,389 | ) | (5,926 | ) | 30,596 | (38,871 | ) | (153,556 | ) | 167,757 | (222,389 | ) | |||||||||||||||
Dividends on preference shares | (22,381 | ) | — | — | — | — | — | (22,381 | ) | ||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (244,770 | ) | $ | (5,926 | ) | $ | 30,596 | $ | (38,871 | ) | $ | (153,556 | ) | $ | 167,757 | $ | (244,770 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income (Loss) for the year ended December 31, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Comprehensive (loss) income | |||||||||||||||||||||||||||
Net (loss) income | $ | (222,389 | ) | $ | (5,926 | ) | $ | 30,596 | $ | (38,871 | ) | $ | (285,838 | ) | $ | 167,757 | $ | (354,671 | ) | ||||||||
Change in net unrealized gains on investments, net of tax | (909 | ) | (89 | ) | — | (89 | ) | — | 178 | (909 | ) | ||||||||||||||||
Comprehensive (loss) income | (223,298 | ) | (6,015 | ) | 30,596 | (38,960 | ) | (285,838 | ) | 167,935 | (355,580 | ) | |||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 132,282 | — | 132,282 | ||||||||||||||||||||
Comprehensive loss attributable to redeemable noncontrolling interests | — | — | — | — | 132,282 | — | 132,282 | ||||||||||||||||||||
Comprehensive (loss) income (attributable) available to RenaissanceRe | $ | (223,298 | ) | $ | (6,015 | ) | $ | 30,596 | $ | (38,960 | ) | $ | (153,556 | ) | $ | 167,935 | $ | (223,298 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Cash Flows for the year ended December 31, 2019 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | RenaissanceRe Consolidated | ||||||||||||||
Cash flows (used in) provided by operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (2,861 | ) | $ | 3,872 | $ | 366,934 | $ | 1,769,250 | $ | 2,137,195 | ||||||||
Cash flows provided by (used in) investing activities | |||||||||||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 306,579 | 77,798 | 60,737 | 16,868,826 | 17,313,940 | ||||||||||||||
Purchases of fixed maturity investments trading | (66,740 | ) | (77,145 | ) | (33,577 | ) | (17,741,881 | ) | (17,919,343 | ) | |||||||||
Net purchases of equity investments trading | — | (3,358 | ) | — | (4,483 | ) | (7,841 | ) | |||||||||||
Net (purchases) sales of short term investments | (116,499 | ) | 739 | (283,717 | ) | (1,501,264 | ) | (1,900,741 | ) | ||||||||||
Net purchases of other investments | — | — | — | (202,878 | ) | (202,878 | ) | ||||||||||||
Net purchases of investments in other ventures | — | — | — | (2,717 | ) | (2,717 | ) | ||||||||||||
Return of investment from investment in other ventures | — | — | — | 11,250 | 11,250 | ||||||||||||||
Net sales of other assets | — | — | — | (4,108 | ) | (4,108 | ) | ||||||||||||
Dividends and return of capital from subsidiaries | 1,400,944 | 4,350 | 13,500 | (1,418,794 | ) | — | |||||||||||||
Contributions to subsidiaries | (1,165,607 | ) | — | (125,000 | ) | 1,290,607 | — | ||||||||||||
Due (from) to subsidiary | (625,924 | ) | (166 | ) | 250 | 625,840 | — | ||||||||||||
Net purchase of TMR | — | — | — | (276,206 | ) | (276,206 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (267,247 | ) | 2,218 | (367,807 | ) | (2,355,808 | ) | (2,988,644 | ) | ||||||||||
Cash flows provided by financing activities | |||||||||||||||||||
Dividends paid – RenaissanceRe common shares | (59,368 | ) | — | — | — | (59,368 | ) | ||||||||||||
Dividends paid – preference shares | (36,756 | ) | — | — | — | (36,756 | ) | ||||||||||||
Issuance of debt, net of expenses | 396,411 | — | — | — | 396,411 | ||||||||||||||
Net third-party redeemable noncontrolling interest share transactions | — | — | — | 827,083 | 827,083 | ||||||||||||||
Taxes paid on withholding shares | (7,253 | ) | — | — | — | (7,253 | ) | ||||||||||||
Net cash provided by financing activities | 293,034 | — | — | 827,083 | 1,120,117 | ||||||||||||||
Effect of exchange rate changes on foreign currency cash | — | — | — | 2,478 | 2,478 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 22,926 | 6,090 | (873 | ) | 243,003 | 271,146 | |||||||||||||
Cash and cash equivalents, beginning of period | 3,534 | 3,350 | 9,604 | 1,091,434 | 1,107,922 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 26,460 | $ | 9,440 | $ | 8,731 | $ | 1,334,437 | $ | 1,379,068 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Condensed Consolidating Statement of Cash Flows for the year ended December 31, 2018 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | RenaissanceRe Consolidated | ||||||||||||||
Cash flows (used in) provided by operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | 17,187 | $ | 6,315 | $ | 62,645 | $ | 1,135,554 | $ | 1,221,701 | |||||||||
Cash flows used in investing activities | |||||||||||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 384,818 | 97,272 | 56,518 | 11,046,968 | 11,585,576 | ||||||||||||||
Purchases of fixed maturity investments trading | (520,935 | ) | (72,292 | ) | (55,932 | ) | (11,840,813 | ) | (12,489,972 | ) | |||||||||
Net (purchases) sales of equity investments trading | — | (1,308 | ) | — | 15,464 | 14,156 | |||||||||||||
Net sales (purchases) of short term investments | 48,600 | (404 | ) | 455 | (1,485,040 | ) | (1,436,389 | ) | |||||||||||
Net purchases of other investments | — | — | — | (199,475 | ) | (199,475 | ) | ||||||||||||
Net purchases of investments in other ventures | — | — | — | (21,473 | ) | (21,473 | ) | ||||||||||||
Return of investment from investment in other ventures | — | — | — | 8,464 | 8,464 | ||||||||||||||
Net sales of other assets | — | — | — | 2,500 | 2,500 | ||||||||||||||
Dividends and return of capital from subsidiaries | 672,098 | — | — | (672,098 | ) | — | |||||||||||||
Contributions to subsidiaries | (785,785 | ) | (16,847 | ) | (65,000 | ) | 867,632 | — | |||||||||||
Due to (from) subsidiaries | (227,762 | ) | (9,525 | ) | 9,449 | 227,838 | — | ||||||||||||
Net cash used in investing activities | (428,966 | ) | (3,104 | ) | (54,510 | ) | (2,050,033 | ) | (2,536,613 | ) | |||||||||
Cash flows provided by financing activities | |||||||||||||||||||
Dividends paid – RenaissanceRe common shares | (52,841 | ) | — | — | — | (52,841 | ) | ||||||||||||
Dividends paid – preference shares | (30,088 | ) | — | — | — | (30,088 | ) | ||||||||||||
RenaissanceRe common share issuance | 250,000 | — | — | — | 250,000 | ||||||||||||||
Issuance of preference shares, net of expenses | 241,448 | — | — | — | 241,448 | ||||||||||||||
Net third-party redeemable noncontrolling interest share transactions | — | — | — | 665,683 | 665,683 | ||||||||||||||
Taxes paid on withholding shares | (7,862 | ) | — | — | — | (7,862 | ) | ||||||||||||
Net cash provided by financing activities | 400,657 | — | — | 665,683 | 1,066,340 | ||||||||||||||
Effect of exchange rate changes on foreign currency cash | — | — | — | (5,098 | ) | (5,098 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (11,122 | ) | 3,211 | 8,135 | (253,894 | ) | (253,670 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 14,656 | 139 | 1,469 | 1,345,328 | 1,361,592 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 3,534 | $ | 3,350 | $ | 9,604 | $ | 1,091,434 | $ | 1,107,922 |
Condensed Consolidating Statement of Cash Flows for the year ended December 31, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | RenaissanceRe Consolidated | |||||||||||||||||
Cash flows (used in) provided by operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | 21,118 | $ | (8,253 | ) | $ | (2,272 | ) | $ | (347,890 | ) | $ | 1,363,084 | $ | 1,025,787 | ||||||||
Cash flows provided by (used in) investing activities | |||||||||||||||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 261,601 | 100,248 | 289,741 | 288,900 | 8,550,179 | 9,490,669 | |||||||||||||||||
Purchases of fixed maturity investments trading | (344,463 | ) | (99,568 | ) | (143,991 | ) | (275,778 | ) | (9,229,732 | ) | (10,093,532 | ) | |||||||||||
Net (purchases) sales of equity investments trading | — | (1,752 | ) | 85,324 | — | 32,265 | 115,837 | ||||||||||||||||
Net sales (purchases) of short term investments | 243,571 | 114 | 41,299 | (493 | ) | 79,520 | 364,011 | ||||||||||||||||
Net purchases of other investments | — | — | — | — | (19,419 | ) | (19,419 | ) | |||||||||||||||
Return of investment from investment in other ventures | — | — | — | — | 20,000 | 20,000 | |||||||||||||||||
Dividends and return of capital from subsidiaries | 478,496 | 9,175 | — | 41,866 | (529,537 | ) | — | ||||||||||||||||
Contributions to subsidiaries | (669,672 | ) | — | (26,649 | ) | (9,890 | ) | 706,211 | — | ||||||||||||||
Due to (from) subsidiary | 294,419 | 13 | (123 | ) | (509 | ) | (293,800 | ) | — | ||||||||||||||
Net cash provided by (used in) investing activities | 263,952 | 8,230 | 245,601 | 44,096 | (684,313 | ) | (122,434 | ) | |||||||||||||||
Cash flows (used in) provided by financing activities | |||||||||||||||||||||||
Dividends paid – RenaissanceRe common shares | (51,370 | ) | — | — | — | — | (51,370 | ) | |||||||||||||||
Dividends paid – preference shares | (22,381 | ) | — | — | — | — | (22,381 | ) | |||||||||||||||
RenaissanceRe common share repurchases | (188,591 | ) | — | — | — | — | (188,591 | ) | |||||||||||||||
Net repayment of debt | — | — | (250,000 | ) | — | — | (250,000 | ) | |||||||||||||||
Issuance of debt, net of expenses | — | — | — | 295,866 | — | 295,866 | |||||||||||||||||
Net third-party redeemable noncontrolling interest share transactions | — | — | — | — | 260,475 | 260,475 | |||||||||||||||||
Taxes paid on withholding shares | (15,139 | ) | — | — | — | — | (15,139 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (277,481 | ) | — | (250,000 | ) | 295,866 | 260,475 | 28,860 | |||||||||||||||
Effect of exchange rate changes on foreign currency cash | — | — | — | — | 8,222 | 8,222 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 7,589 | (23 | ) | (6,671 | ) | (7,928 | ) | 947,468 | 940,435 | ||||||||||||||
Cash and cash equivalents, beginning of year | 7,067 | 162 | 6,671 | 9,397 | 397,860 | 421,157 | |||||||||||||||||
Cash and cash equivalents, end of year | $ | 14,656 | $ | 139 | $ | — | $ | 1,469 | $ | 1,345,328 | $ | 1,361,592 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Page | |||
I | |||
II | |||
III | |||
IV | |||
VI |
December 31, 2019 | |||||||||||
Amortized Cost or Cost | Fair Value | Amount at which shown in the Balance Sheet | |||||||||
Type of investment: | |||||||||||
Fixed maturity investments | |||||||||||
U.S. treasuries | $ | 4,439,533 | $ | 4,467,345 | $ | 4,467,345 | |||||
Agencies | 342,162 | 343,031 | 343,031 | ||||||||
Non-U.S. government | 495,465 | 497,392 | 497,392 | ||||||||
Non-U.S. government-backed corporate | 321,303 | 321,356 | 321,356 | ||||||||
Corporate | 3,010,615 | 3,075,660 | 3,075,660 | ||||||||
Agency mortgage-backed | 1,130,746 | 1,148,499 | 1,148,499 | ||||||||
Non-agency mortgage-backed | 282,267 | 294,604 | 294,604 | ||||||||
Commercial mortgage-backed | 489,352 | 468,698 | 468,698 | ||||||||
Asset-backed | 555,971 | 555,070 | 555,070 | ||||||||
Total fixed maturity investments | $ | 11,067,414 | 11,171,655 | 11,171,655 | |||||||
Short term investments | 4,566,277 | 4,566,277 | |||||||||
Equity investments | 436,931 | 436,931 | |||||||||
Other investments | 1,087,377 | 1,087,377 | |||||||||
Investments in other ventures, under equity method | 106,549 | 106,549 | |||||||||
Total investments | $ | 17,368,789 | $ | 17,368,789 |
At December 31, | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Fixed maturity investments trading, at fair value - amortized cost $998 at December 31, 2019 (2018 - $238,989) | $ | 1,005 | $ | 240,443 | |||
Short term investments, at fair value | 189,446 | 72,917 | |||||
Cash and cash equivalents | 26,460 | 3,534 | |||||
Investments in subsidiaries | 5,204,260 | 4,414,475 | |||||
Due from subsidiaries | 10,725 | 57,039 | |||||
Accrued investment income | — | 1,046 | |||||
Receivable for investments sold | 173 | 203 | |||||
Other assets | 847,406 | 458,842 | |||||
Goodwill and other intangible assets | 116,212 | 120,476 | |||||
Total assets | $ | 6,395,687 | $ | 5,368,975 | |||
Liabilities and Shareholders’ Equity | |||||||
Liabilities | |||||||
Notes and bank loans payable | $ | 391,475 | $ | 300,000 | |||
Due to subsidiaries | 6,708 | 6,453 | |||||
Other liabilities | 26,137 | 17,442 | |||||
Total liabilities | 424,320 | 323,895 | |||||
Shareholders’ Equity | |||||||
Preference shares: $1.00 par value – 16,010,000 shares issued and outstanding at December 31, 2019 (2018 – 16,010,000) | 650,000 | 650,000 | |||||
Common shares: $1.00 par value – 44,148,116 shares issued and outstanding at December 31, 2019 (2018 – 42,207,390) | 44,148 | 42,207 | |||||
Additional paid-in capital | 568,277 | 296,099 | |||||
Accumulated other comprehensive loss | (1,939 | ) | (1,433 | ) | |||
Retained earnings | 4,710,881 | 4,058,207 | |||||
Total shareholders’ equity | 5,971,367 | 5,045,080 | |||||
Total liabilities and shareholders’ equity | $ | 6,395,687 | $ | 5,368,975 |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues | |||||||||||
Net investment income | $ | 39,629 | $ | 24,791 | $ | 23,109 | |||||
Net foreign exchange gains (losses) | 7,342 | (3 | ) | (1 | ) | ||||||
Net realized and unrealized gains (losses) on investments | 12,393 | 633 | (1,357 | ) | |||||||
Total revenues | 59,364 | 25,421 | 21,751 | ||||||||
Expenses | |||||||||||
Interest expense | 18,086 | 5,683 | 1,572 | ||||||||
Operational expenses | 7,506 | 7,679 | 11,314 | ||||||||
Corporate expenses | 58,393 | 25,190 | 18,546 | ||||||||
Total expenses | 83,985 | 38,552 | 31,432 | ||||||||
Loss before equity in net income (loss) of subsidiaries | (24,621 | ) | (13,131 | ) | (9,681 | ) | |||||
Equity in net income (loss) of subsidiaries | 773,419 | 240,495 | (212,708 | ) | |||||||
Net income (loss) | 748,798 | 227,364 | (222,389 | ) | |||||||
Dividends on preference shares | (36,756 | ) | (30,088 | ) | (22,381 | ) | |||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 712,042 | $ | 197,276 | $ | (244,770 | ) |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Comprehensive income (loss) | |||||||||||
Net income (loss) | $ | 748,798 | $ | 227,364 | $ | (222,389 | ) | ||||
Change in net unrealized gains on investments, net of tax | 2,173 | (1,657 | ) | (909 | ) | ||||||
Foreign currency translation adjustments, net of tax | (2,679 | ) | — | — | |||||||
Comprehensive income (loss) available (attributable) to RenaissanceRe | $ | 748,292 | $ | 225,707 | $ | (223,298 | ) |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows used in operating activities: | |||||||||||
Net income (loss) | $ | 748,798 | $ | 227,364 | $ | (222,389 | ) | ||||
Less: equity in net (income) loss of subsidiaries | (773,419 | ) | (240,495 | ) | 212,708 | ||||||
(24,621 | ) | (13,131 | ) | (9,681 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||||||||||
Net realized and unrealized (gains) losses on investments | (12,393 | ) | (633 | ) | 1,357 | ||||||
Other | 34,153 | 30,951 | 29,442 | ||||||||
Net cash used in operating activities | (2,861 | ) | 17,187 | 21,118 | |||||||
Cash flows provided by (used in) investing activities: | |||||||||||
Proceeds from maturities and sales of fixed maturity investments trading | 306,579 | 384,818 | 261,601 | ||||||||
Purchases of fixed maturity investments trading | (66,740 | ) | (520,935 | ) | (344,463 | ) | |||||
Net (purchases) sales of short term investments | (116,499 | ) | 48,600 | 243,571 | |||||||
Dividends and return of capital from subsidiaries | 1,400,944 | 672,098 | 478,496 | ||||||||
Contributions to subsidiaries | (1,165,607 | ) | (785,785 | ) | (669,672 | ) | |||||
Due to (from) subsidiary | (625,924 | ) | (227,762 | ) | 294,419 | ||||||
Net cash provided by (used in) investing activities | (267,247 | ) | (428,966 | ) | 263,952 | ||||||
Cash flows provided by (used in) financing activities: | |||||||||||
Dividends paid – RenaissanceRe common shares | (59,368 | ) | (52,841 | ) | (51,370 | ) | |||||
Dividends paid – preference shares | (36,756 | ) | (30,088 | ) | (22,381 | ) | |||||
Issuance of debt, net of expenses | 396,411 | — | — | ||||||||
RenaissanceRe common share repurchases | — | — | (188,591 | ) | |||||||
RenaissanceRe common share issuance | — | 250,000 | — | ||||||||
Issuance of preference shares, net of expenses | — | 241,448 | — | ||||||||
Taxes paid on withholding shares | (7,253 | ) | (7,862 | ) | (15,139 | ) | |||||
Net cash provided by (used in) financing activities | 293,034 | 400,657 | (277,481 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 22,926 | (11,122 | ) | 7,589 | |||||||
Cash and cash equivalents, beginning of year | 3,534 | 14,656 | 7,067 | ||||||||
Cash and cash equivalents, end of year | $ | 26,460 | $ | 3,534 | $ | 14,656 |
December 31, 2019 | Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Future Policy Benefits, Losses, Claims and Loss Expenses | Unearned Premiums | Premium Revenue | Net Investment Income | Benefits, Claims, Losses and Settlement Expenses | Amortization of Deferred Policy Acquisition Costs | Other Operating Expenses | Net Written Premiums | |||||||||||||||||||||||||||
Property | $ | 79,795 | $ | 4,073,850 | $ | 539,183 | $ | 1,627,494 | $ | — | $ | 965,424 | $ | 313,761 | $ | 139,015 | $ | 1,654,259 | |||||||||||||||||
Casualty and Specialty | 584,196 | 5,310,059 | 1,991,792 | 1,710,909 | — | 1,131,637 | 448,678 | 84,546 | 1,727,234 | ||||||||||||||||||||||||||
Other | — | 440 | — | — | 423,833 | (40 | ) | (207 | ) | (828 | ) | — | |||||||||||||||||||||||
Total | $ | 663,991 | $ | 9,384,349 | $ | 2,530,975 | $ | 3,338,403 | $ | 423,833 | $ | 2,097,021 | $ | 762,232 | $ | 222,733 | $ | 3,381,493 | |||||||||||||||||
December 31, 2018 | Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Future Policy Benefits, Losses, Claims and Loss Expenses | Unearned Premiums | Premium Revenue | Net Investment Income | Benefits, Claims, Losses and Settlement Expenses | Amortization of Deferred Policy Acquisition Costs | Other Operating Expenses | Net Written Premiums | |||||||||||||||||||||||||||
Property | $ | 66,656 | $ | 3,086,254 | $ | 379,943 | $ | 1,050,831 | $ | — | $ | 497,895 | $ | 177,912 | $ | 112,954 | $ | 1,055,188 | |||||||||||||||||
Casualty and Specialty | 410,005 | 2,985,393 | 1,336,078 | 925,298 | — | 622,320 | 255,079 | 64,883 | 1,076,714 | ||||||||||||||||||||||||||
Other | — | 4,624 | — | — | 261,866 | (197 | ) | (2 | ) | 430 | — | ||||||||||||||||||||||||
Total | $ | 476,661 | $ | 6,076,271 | $ | 1,716,021 | $ | 1,976,129 | $ | 261,866 | $ | 1,120,018 | $ | 432,989 | $ | 178,267 | $ | 2,131,902 | |||||||||||||||||
December 31, 2017 | Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Future Policy Benefits, Losses, Claims and Loss Expenses | Unearned Premiums | Premium Revenue | Net Investment Income | Benefits, Claims, Losses and Settlement Expenses | Amortization of Deferred Policy Acquisition Costs | Other Operating Expenses | Net Written Premiums | |||||||||||||||||||||||||||
Property | $ | 63,583 | $ | 2,486,390 | $ | 347,032 | $ | 931,070 | $ | — | $ | 1,297,985 | $ | 113,816 | $ | 94,194 | $ | 978,014 | |||||||||||||||||
Casualty and Specialty | 362,968 | 2,575,492 | 1,130,577 | 786,501 | — | 565,026 | 233,077 | 66,548 | 893,307 | ||||||||||||||||||||||||||
Other | — | 18,526 | — | 4 | 222,209 | (1,583 | ) | (1 | ) | 36 | 4 | ||||||||||||||||||||||||
Total | $ | 426,551 | $ | 5,080,408 | $ | 1,477,609 | $ | 1,717,575 | $ | 222,209 | $ | 1,861,428 | $ | 346,892 | $ | 160,778 | $ | 1,871,325 |
Gross Amounts | Ceded to Other Companies | Assumed From Other Companies | Net Amount | Percentage of Amount Assumed to Net | ||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||
Property and liability premiums earned | $ | 404,525 | $ | 1,414,383 | $ | 4,348,261 | $ | 3,338,403 | 130 | % | ||||||||
Year ended December 31, 2018 | ||||||||||||||||||
Property and liability premiums earned | $ | 292,219 | $ | 1,095,886 | $ | 2,779,796 | $ | 1,976,129 | 141 | % | ||||||||
Year ended December 31, 2017 | ||||||||||||||||||
Property and liability premiums earned | $ | 244,285 | $ | 833,929 | $ | 2,307,219 | $ | 1,717,575 | 134 | % |
Affiliation with Registrant | Deferred Policy Acquisition Costs | Reserves for Unpaid Claims and Claim Adjustment Expenses | Discount, if any, Deducted | Unearned Premiums | Earned Premiums | Net Investment Income | |||||||||||||||||
Consolidated Subsidiaries | |||||||||||||||||||||||
Year ended December 31, 2019 | $ | 663,991 | $ | 9,384,349 | $ | — | $ | 2,530,975 | $ | 3,338,403 | $ | 423,833 | |||||||||||
Year ended December 31, 2018 | $ | 476,661 | $ | 6,076,271 | $ | — | $ | 1,716,021 | $ | 1,976,129 | $ | 261,866 | |||||||||||
Year ended December 31, 2017 | $ | 426,551 | $ | 5,080,408 | $ | — | $ | 1,477,609 | $ | 1,717,575 | $ | 222,209 | |||||||||||
Claims and Claim Adjustment Expenses Incurred Related to | Amortization of Deferred Policy Acquisition Costs | Paid Claims and Claim Adjustment Expenses | Net Premiums Written | ||||||||||||||||||||
Affiliation with Registrant | Current Year | Prior Year | |||||||||||||||||||||
Consolidated Subsidiaries | |||||||||||||||||||||||
Year ended December 31, 2019 | $ | 2,123,876 | $ | (26,855 | ) | $ | 762,232 | $ | 1,098,054 | $ | 3,381,493 | ||||||||||||
Year ended December 31, 2018 | $ | 1,390,767 | $ | (270,749 | ) | $ | 432,989 | $ | 894,769 | $ | 2,131,902 | ||||||||||||
Year ended December 31, 2017 | $ | 1,902,424 | $ | (40,996 | ) | $ | 346,892 | $ | 974,825 | $ | 1,871,325 |
Table of Contents
RenaissanceRe Holdings Ltd. and Subsidiaries
Bermuda
|
Headquarters |
Renaissance House |
12 Crow Lane |
Pembroke HM 19 |
Bermuda |
Tel: +1 441 295 4513 |
London |
125 Old Broad Street |
London, EC2N 1AR |
United Kingdom |
Tel: +44 (0)20 7283 2646 |
Dublin |
4th and 5th Floors |
Hardwicke House |
Upper Hatch Street |
Dublin 2, Ireland |
Tel: +353 1 678 7388 |
Singapore |
50 Collyer Quay |
OUE Bayfront#11-02 |
Singapore 049321 |
Tel: +65 6572 8866 |
Zurich |
Beethovenstrasse 33 |
CH-8002 Zürich |
Switzerland |
Tel: +41 43 283 6000 |
Sydney |
Level 21, Australia Square |
264 George Street |
Sydney, NSW 2000 |
Australia |
Tel: +61 2 8247 7244 |
USA |
New York |
140 Broadway, Suite 4200 |
New York, New York 10005 |
Tel: +1 212 238 9600 |
Chicago |
200 North Martingale Road |
Suite 510 |
Schaumburg, Il 60173 |
Tel: +1 847 310 5960 |
Connecticut |
Two Stamford Plaza |
281 Tresser Blvd., 4th Floor |
Stamford, CT 06901 |
Tel: +1 203 900 1200 |
North Carolina |
WeatherPredict Consulting Inc. |
3128 Highwoods Boulevard |
Suite 230 |
Raleigh, NC 27604 |
Tel: +1 919 876 3633 |
Rhode Island |
WeatherPredict Consulting Inc. |
26 South County Commons Way |
Unit A7 |
South Kingstown, RI 02879 |
Tel: +1 401 788 9031 |
RenaissanceRe Holdings Ltd. and Subsidiaries
Kevin J. O’Donnell |
President and |
Chief Executive Officer |
RenaissanceRe Holdings Ltd. |
Robert Qutub |
Executive Vice President |
and Chief Financial Officer |
RenaissanceRe Holdings Ltd. |
Ian D. Branagan |
Senior Vice President |
and Group Chief Risk Officer |
RenaissanceRe Holdings Ltd. |
Sean G. Brosnan |
Senior Vice President and |
Chief Investment Officer |
RenaissanceRe Holdings Ltd. |
Ross A. Curtis |
Senior Vice President and |
Group Chief Underwriting Officer |
RenaissanceRe Holdings Ltd. |
Bryan Dalton |
Senior Vice President and |
Active Underwriter |
RenaissanceRe Syndicate 1458 |
Aditya K. Dutt |
President |
Renaissance Underwriting |
Managers, Ltd. |
Senior Vice President, Ventures |
RenaissanceRe Holdings Ltd. |
James C. Fraser |
Senior Vice President and |
Chief Accounting Officer |
RenaissanceRe Holdings Ltd. |
David E. Marra |
Senior Vice President and |
Chief Underwriting Officer |
– Casualty and Specialty |
RenaissanceRe Holdings Ltd. |
President |
Renaissance Reinsurance U.S. Inc. |
Justin D. O’Keefe |
Senior Vice President and |
Chief Underwriting Officer |
– Property |
RenaissanceRe Holdings Ltd. |
Jonathan D. A. Paradine |
Chief Executive |
– Singapore Branch |
Renaissance Reinsurance Ltd. |
DaVinci Reinsurance Ltd. |
Senior Vice President |
RenaissanceRe Holdings Ltd. |
Stephen H. Weinstein |
Senior Vice President, |
Chief Compliance Officer, |
Group General Counsel |
and Corporate Secretary |
RenaissanceRe Holdings Ltd. |
Table of Contents
All stocks used in this report are FSC certified. Printed at azero-discharge facility usingsoy-based inks. Please recycle this publication. |
Table of Contents
RenaissanceRe Holdings Ltd. |
Renaissance House 12 Crow Lane |
Pembroke HM 19 |
Bermuda |
Tel: +1 441 295 4513 renre.com |